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Is this another sell off panic as almost $2 billion in Ethereum awakens in China
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Is this another sell off panic as almost $2 billion in Ethereum awakens in China

2024-08-07 by Ndaman Olayinka 5 minutes read
Is this another sell off panic as almost $2 billion in Ethereum awakens in China

Lookonchain reports that approximately $2 billion worth of Ethereum (ETH), stored in hundreds of different addresses, experienced movement on August 7, 2024, for the first time.

Web3 data analysis tool Lookonchain claims that a significant amount of Ethereum—possibly 789,533 $ETH, or nearly $2 billion at current prices—is being moved by hundreds of wallets that have been inactive for as long as 3.3 years. Following investigations, it was noticed that each of these addresses obtained their funds in 2020 after Plus Token Ponzi 2 distributed the 789,533 $ETH to thousands of wallets, following a period of inactivity since April 2021, when the Ethereum were initially dormant.

According to a social media update from the company Lookonchain, the dispersed 789,533 $ETH were seized by police authorities in China in the massive crackdown on the PlusToken Ponzi scheme.

On November 27, 2020, the Block reported that Chinese police confiscated cryptocurrency assets valued at over $4.2 billion during the massive PlusToken Ponzi scheme crackdown. The Jiangsu Yancheng Intermediate People's Court officially released its ruling on November 19, 2020, with a detailed breakdown of all the cryptocurrency assets that the Chinese police had seized in connection with the PlusToken case.

During the crackdown, Chinese law enforcement seized a total of 194,775 BTC, 833,083 ETH, 213,724 USDT, 1.4 million LTC, 6 billion DOGE, 74,167 DASH, 27.6 million EOS, 487 million XRP, and 79,581 BCH from seven convicts. As part of its decision, the court declared that "the seized cryptocurrencies will be processed pursuant to laws, and the proceeds and gains will be forfeited to the nation's national treasury.

Ethereum sell-off: United States Government makes move

While the entire cryptocurrency market has had a difficult weekend, Ethereum (ETH) holders have been particularly badly affected. The asset has been under selling pressure from Jump Crypto and now the U.S. government, in addition to unsettling macroeconomic dynamics that have sent perceived risk assets plunging.

The US government has given Ethereum owners additional cause for concern in the last 24 hours. The government transferred 300 ETH, or approximately $700,000, that it had seized in a May 2024 case to Bybit on August 5 through two transactions. The first was a test transaction of 0.041 ETH, or approximately $97.

Jump Trading started selling again after $481 million Ethereum sell-off

The recent $481 million and $116.7 million sale of Ethereum by Jump Trading has severely impacted the cryptocurrency market. The company has sold a significant amount of Ethereum over the last week that was counter-exploited in February 2023 by the Wormhole Hacker. There might be plans to sell an additional 19,049 ETH, or approximately $48.22 million. Currently, Jump Trading has 63.6 million worth of Lido wstETH remaining.

The US Commodities and Futures Trading Commission has opened an investigation into Jump Trading (CFTC). On June 24, the company's president, Kanav Kariya, announced his resignation. The situation is made more complex by the CFTC's ongoing investigation and the recent change in leadership.

As of the time of writing, Ethereum’s price stands at $2,473.54, with a 24-hour trading volume of $23.75 billion. It has risen by 1.49% in the last 24 hours, with a market cap of $297.41 billion. The circulating supply of ETH coins is 120.26 million.

In addition, Lido wstETH is trading at $2,897.90 and has a $37,338,571 24-hour trading volume. Over the past day, Lido wstETH has seen a 0.92% increase in market capitalization to $10,483,743,276. There are currently 3,617,918 WSTETH coins in circulation.

Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.