A new report on the Plus Token scam shows that legal exchanges are being used to dump coins, despite strict KYC verification requirements.
Investigation company OXT Research has released the second volume of in-depth blockchain analysis of the Ponzi PlusToken program.
Report explained that money from PlusToken is often transferred to coin shakers. After scrambling – the purpose to hide the origin of the coin, the amount is merged, and finally the distribution. The OXT report says:
"About 80% of the coins transferred into the mixer have been distributed while there are still 33,872 BTC in the mixer and 3,853 BTC in the distribution process, resulting in a total of 37,725 BTC that has been shuffled, but not yet distributed. "
About US $ 1.3 billion has been sold out in the past 7 months, the report stressed that distribution increases when the market is strong and “pauses” when the market is weak. OXT found that nearly 70% of all hoarding has been distributed to date, meaning that “most of PlusToken's market effects have been adopted.”
A large number of coins ended on OKEx. “OKEx is a newly marked and important destination that received nearly 50% of February distribution,” the report stated, adding that Huobi is also still one of the favorite destinations for coins.
PlusToken discharges and sells coins on regulated exchanges
ErgoBTC – an analyst who tracks PlusToken's activities, has pointed out an important aspect of the report – the use of regulated exchanges to discharge BTC, as opposed to selling through OTC tables. ErgoBTC tweet:
"Regulated exchanges have been the destination of these coins for the time after the project is closed. Although the true stories are built for business benefit, OTC is not a favorite destination for these coins. "
Regulatory agencies around the globe have been pushing for KYC and AML requirements for years, demonstrating that the law is a method of anti-fraud.
Both OKEX and Huobi platforms require KYC before withdrawals.
PlusToken has been around for almost a year
Over the past several months, the cryptocurrency market has experienced the effects of unraveling one of the biggest scams in the industry's history. The scam started in 2018 and attracted nearly 10 million participants in 2019.
Authorities arrested several people behind the project in June 2019, although it is unclear how many stakeholders are still outlawed. Some reports emphasize the potential correlation between Bitcoin's downward trend in 2019 – starting around the same time the Plus Token was destroyed, and the apparent Clear Token sale.
PlusToken added BTC on March 6
Data from a few days ago shows a large amount of BTC has been moved from wallets supposedly related to Plus Token.
ErgoBTC noted that about 13,000 Bitcoins were transferred into a mixer, according to a tweet on March 6.
Less than 24 hours later, the price of Bitcoin dropped from $ 9,200 to $ 8,850. The Bitcoin price then continued to plummet at the time of writing of $ 7,400.
Other experts, however, find a greater correlation with the decline of traditional markets, explaining that investors are flocking to more stable assets.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to CoinTelegraph
Translated by ToiYeuBitcoin