TLDR
- Blockchain analytics service Lookonchain initially claimed PlusToken-linked wallets had moved $1.8 billion worth of ETH.
- Follow-up analysis by EmberCN found most of that ETH had actually been sold in 2021.
- EmberCN estimates only about $63 million worth of ETH was actually moved recently.
- Lookonchain deleted their original post without issuing a correction.
- PlusToken was a major alleged crypto Ponzi scheme that defrauded investors of up to $2.9 billion.
A recent social media post about large Ethereum movements linked to the PlusToken crypto scam has sparked debate and confusion in the crypto community.
On August 6, blockchain analytics service Lookonchain posted on X (formerly Twitter) that wallets connected to PlusToken had begun moving 789,533 ETH, worth approximately $1.8 billion. However, this claim was quickly challenged by other analysts.
PlusToken, which operated as a Chinese crypto wallet app between 2018 and 2019, is considered one of the largest alleged crypto Ponzi schemes in history.
Investigators found that PlusToken may have defrauded investors of up to $2.9 billion before Chinese authorities arrested several individuals connected to the project in 2019.
Shortly after Lookonchain’s post, Chinese crypto data account EmberCN conducted its own investigation. EmberCN’s findings contradicted Lookonchain’s initial report.
According to EmberCN, most of the 789,500 ETH mentioned by Lookonchain had actually been sent to Bidesk, a crypto exchange based in the British Virgin Islands, between June and September 2021.
EmberCN’s analysis identified “about 12 addresses” linked to PlusToken. Their investigation concluded that only around 25,757 ETH, valued at approximately $63.1 million, had been transferred in the 24 hours prior to their report. This figure is significantly lower than Lookonchain’s initial claim of $1.8 billion.
Following the conflicting reports, Lookonchain deleted its original post without publishing an official clarification or retraction. The lack of follow-up from Lookonchain has added to the confusion surrounding the alleged token movements.
Adding to the complexity of the situation, blockchain analytics platform Arkham Intelligence also weighed in on the PlusToken-linked ETH transfers.
TODAY: OVER $450M PLUSTOKEN FUNDS MOVED
Plustoken wallets have been connected with dozens of wallets moving $464.7M of ETH in only the past 12 hours.
Plustoken was a 2018-19 Ponzi Scheme that scammed investors worldwide for between $2B and $2.9B in cryptocurrency. 789.5K ETH… pic.twitter.com/DCR8itinIv
— Arkham (@ArkhamIntel) August 7, 2024
Arkham claimed that PlusToken-associated wallets had moved $450 million worth of ETH. However, a closer examination of the data shared by Arkham showed limited movement from primary PlusToken wallets, with only about $12 million in ETH transfers highlighted in the 12 hours before their report.
The discrepancies between these various reports highlight the challenges of accurately tracking and reporting on blockchain transactions, especially those related to complex fraud cases like PlusToken. It also underscores the importance of thorough verification and cross-checking in blockchain analytics.
The PlusToken case itself remains a significant event in crypto history. In July 2019, Chinese police detained six people involved in the PlusToken project in Vanuatu and extradited them to mainland China to face criminal charges.
According to local media reports from 2020, one of the main ringleaders of the PlusToken project, known only as Zhou, was set to face criminal charges in China.
As of the latest reports, the exact amount of ETH moved by PlusToken-linked wallets remains unclear. While initial claims of $1.8 billion in movements appear to be overstated, the true figure and the implications of these transactions are still being debated within the crypto community.
