Blockchain analytics company Chainanalysis have been tracking funds from the $4 billion scam and they believe that the Ponzi-scheme have money cleaners selling their bitcoin and ether at an underground, over-the-counter, (OTC) desk, at Huobi exchange.
Chainanalysis have been tracking the movement of PlusToken bitcoin for a few months now and they have come to the conclusion that bitcoin’s recent price fall is likely due to these scammers selling off their huge bitcoin stash on the Huobi exchange where KYC (Know your customer) requirements are less stringent than on other exchanges.
The analytics company have also found out that PlusToken has cashed out roughly 25,000 bitcoin (about $165 million) since August and have approximately 20,000 bitcoin (about $130 million) left in the company purse.￼
It’s almost impossible to know 100% if this is the real reason why bitcoin is crashing right now.
But we can say that these enormous over-the-counter cashouts have increased the volatility in the crypto market and Chainanalysis think they can prove that there is a correlation between these cashouts and Bitcoin’s price crashes since summer 2019.
Bitcoins price is currently around the $6600 area with experts divided on whether we rally from here or head further down.