Crypto analyst Jacob Canfield thinks that criminals from China and Korea are behind a crypto Ponzi scheme driving the bullish price trends of Bitcoin, Ethereum, EOS and the greater altcoin market.
The infamous scam PlusToken launched in 2018, promising investors high-yield returns from “exchange profit, mining income, and referral benefits.” It reportedly drew in three million registered users.
The organizers of the scam initiated an exit strategy in June of 2019, stealing an estimated 90,000 to 200,000 Bitcoin (BTC), 790,000 Ethereum (ETH) and 26 million EOS.
Now, after multiple accusations that PlusToken scammers have sold Bitcoin and driven the price down, Canfield says he believes the thieves may be re-entering the world of crypto, manipulating the market and steering the bullish rally of 2020.
“They are sitting currently around $600 million worth of capital cash, and it was done on what we believe was Huobi and OKEx exchanges which are in China, and the problem with Huobi is the order books are closed so you can’t really view them or see them.
If they’re using their capital to push the Ethereum market, they can use $100 million, $200 million and push Ethereum back to 300, 500, 600, 900, 1,000, and then they’re going to get a much bigger bang out of their buck.”
With the stack of cash they may have accumulated, Canfield says the scammers are now more than capable of rigging the market.
“A lot of analysts, a lot of really smart analysts believe that PlusToken was the real big catalyst of why Bitcoin went from $3,500 all the way up to $14,000. Now, how does that work? When all of these people are buying Bitcoin,