Chinese cryptocurrency exchange Huobi has so far seen the highest number of withdrawals from the alleged crypto Ponzi scheme PlusToken, this according to a recent study.
The largest Ponzi scheme in the history of crypto.
New York-based blockchain infrastructure company Elementus released an investigation on August 23, claiming that nearly 50% of the total number of PlusToken withdrawals was sent to Huobi.
As previously reported, PlusToken is a reportedly collapsed Ponzi scheme that has generated a reported $3 billion in “stolen cryptocurrency” and which may now be liquidated on various cryptocurrency exchanges.
On August 14, Dovey Wan drew attention to PlusToken on social media, where she provides a lot of information about the alleged Ponzi scheme, including wallet addresses that are known to be associated with PlusToken.
It is surprising that until recently a Ponzi scheme of this magnitude has largely gone unnoticed by the “general public”. And even now that the fraud has come to light, little or no information is available about what actually happened or the amount of funds involved.
The Elementus investigation, focusing in particular on the stolen ETH funds, indicates that the PlusToken network consisted of around 100 different ETH wallet addresses. In total, PlusToken has stolen just under 10 million ETH from around 800.000 users.
About 820.000 Ethereum (ETH) has remained on-chain so far, meaning that the funds have not been moved since the end of June. The remaining ETH funds, approximately 9 million ETH, have been sent from the PlusToken wallets to no fewer than 248.000 different addresses. However, only a few thousand of them represent the majority of the ETH volume.
According to Elementus’ research, a large part of the stolen funds, both Bitcoin (BTC) and Ethereum (ETH), have been distributed to various cryptocurrency exchanges. The Chinese crypto exchange Huobi is at the top of the list, which has received more than 4.3 million Ethereum (ETH), out of a total of 9.2 million ETH, from the stolen funds.
Other cryptocurrency exchanges that have received “stolen” PlusToken funds are the Chinese exchange ZB.com, which received about 8% of the ETH funds, as well as the South Korean crypto exchange Upbit, Malta-based OKEx and the Chinese cryptocurrency exchange Gate.
Although little has been reported, the PlusToken fraud scandal has a huge scope and can be seen as the largest “exit scam” or Ponzi scheme yet in the history of cryptocurrency.
On June 29, the South China Morning Post published that six Chinese suspects have been arrested on suspicion of internet fraud. After investigation it appears that all six suspects are leading members of the PlusToken team.