History’s third largest Ponzi, Plus Token, took in nearly 10 million Ethereum—worth $1.9 billion—from over 800,000 victims, according to analysis conducted by Elementus. These coins have the potential to flood the ETH market should the perpetrators cash out.
Background on the Plus Token Wallet Ponzi
Plus Token Wallet, a mobile app promoted across China, South Korea, and South East Asia promising monthly returns upward of 10 percent, collapsed late June—leaving its mark as the world’s third largest Ponzi scam.
Yet, only recently have researchers uncovered the magnitude of the scheme. A few days ago, evidence showed that over $2.1 billion Bitcoin was sitting in Plus Token wallets. These coins may find their way back on to the market, shocking prices with a glut of supply.
Today, an analytics firm released details behind an additional $1.9 billion Ethereum that were taken in by the scam.
Deeper analysis on the Ponzi’s damages
Elementus, a company which indexes and organizes blockchain data, released an analysis showing that the Ponzi collected 9.9 million ETH—worth roughly $1.9 billion at current prices. Of that Ethereum, over 9 million of that seems to have been paid out to “winners” of the pyramid scam.
What remains is 830,000 ETH (~$160 million), which has seen no movement since the end of June. The halt in activity coincides with the arrest of ringleaders from the scam, meaning these coins may be stuck in limbo. Deposits into these Plus Token wallets stopped around June 27, the same time the supposed scam organizers were arrested by Chinese authorities on the island of Vanuatu.
Pessimistically, other second-level ringleaders may have access to these wallets and find ways to dump the coins on exchanges.