Analysts Accuse PlusToken Scammers for The Recent Bitcoin Massive Crash

News / 09.03.2020

Bitcoin registered its single biggest daily loss since September 2019 after declining by 10% from $8,900 to $8,000 on Sunday. Bitcoin continued its decline today and at press time, it was trading at $7,705, according to data from CoinMarketCap.

Although this sharp price drop coincided with a bloody day in the traditional stock market, analysts claim there may be another factor fueling bitcoin’s sudden crash.

Trader Kevin Svenson claims this sudden crash is not one of the usual sell-offs, since the market is most likely taking a hit from a single whale. He attributed the market dump to the PlusToken Scammers. Svenson noted that, the PlusToken Scammers are fond of suppressing every bullish made by bitcoin.

A day before this crash happened, scammers in control of the remaining wallets of the PlusToken Ponzi scheme, moved 13,000 BTC (worth about $120 million that time) to mixers.

It is believed that, these bad actors might have offloaded their holdings, causing prices to dump. Crypto traders use mixers to hide the source of a crypto transaction by outputting batches with different coins than are sent it.

This is not the first PlusToken has been accused of bitcoin’s sudden massive crash. Back in December, the crypto analytic giant, Chainalysis, linked PlusToken’s $3 billion scam to every major Bitcoin dump in the second half of 2019.

Notably, Chainalysis estimated that PlusToken still had 20,000 more BTC to offload. This means that until all their BTC holdings are offloaded, massive dumps like this are bound to happen again.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Debasish Das is from India, an engineering graduate and holds a postgraduate degree in management. He has 10 years of experience in the financial sector, having worked for one of the biggest MNC banking groups in the country. Currently he has business in e-commerce, insurance and consultancy. As an avid blockchain and cryptocurrency enthusiasts he believes in investing in the future of technology, and feels this is going to make the world a single marketplace and also give the power from centralized banks and governments back to people.