About $16 million worth of Ether from the Plus Token scam has started moving to exchanges this week, indicating an intent to sell, according to on-chain analyst ErgoBTC.
The Plus Token Ponzi scheme, which defrauded investors between 2018 and 2019, led to the reported seizure of $4.2 billion in crypto by Chinese authorities, including 833,083 ETH.
According to ErgoBTC’s newest analyst, about a third of the seized Ether in 2021 was sold on the now-defunct crypto exchange Bidesk. The rest, approximately 542,000 Ether in thousands of wallets, began moving in August and was consolidated into 294 addresses.
This week, there was a movement of 15,700 Ether, of which approximately 7,000 ($16 million) ended up on the exchange.
ErgoBTC stated on X that given the recent attempt to redeploy ETH, the active distribution of the 15.7k ETH moved yesterday is unlikely to be the last of the 540k ETH supply distribution.
The Plus Token fund’s moves last August were divisive, as no one could agree on how much of the Ponzi scheme’s ETH was still available to be sold.
Philippine police arrested a 23-year-old self-described “Crypto King,” accused of defrauding investors of about 600 million Philippine pesos ($10.5 million).
The suspect, identified as “Joshua,” allegedly targeted high-profile victims, including media figures, police, and government employees, according to the government agency Philippine News Agency.
He reportedly kept a database of potential victims, indicating that his targeting was premeditated and not random.
The so-called crypto king was previously arrested in September 2023 under the name Vance Joshua Tamayo. Tamayo portrayed himself as a crypto genius, promising investors a 4.5% monthly return through a scheme presented as a legitimate company. He initially fulfilled these promises, but later cut off communication with investors.
In the first case, he was accused of defrauding victims of 100 million pesos ($1.7 million), but was released on bail for 54,000 pesos (less than $950).
His scam volume has since increased after authorities received additional complaints from alleged victims.
Police said they plan to file a “large-scale estafa” case, or large-scale fraud case, against Tamayo, which would eliminate his bail option.
Upbit’s dominance in South Korea’s crypto market has raised concerns about a possible bank run at K-Bank, one of the largest online banks in the country and the banking partner of the cryptocurrency exchange.
Under South Korean regulations, crypto exchanges must work with local banks to facilitate fiat on- and off-ramps. Customers of these exchanges must have an account with the partner bank to ensure that their crypto activities are linked to their legal identity.
Only five exchanges in South Korea meet these requirements and the Upbit-K-Bank partnership dominates 70% of the local market.
During the National Assembly audit of state affairs on October 10, Lawmaker Lee Kang-il noted that K-Bank holds about 4 trillion won (about $3 billion) of Upbit customer deposits, accounting for about a fifth of the bank’s total funds.
Lee said that if Upbit’s services were to be disrupted, it could trigger a bank run at K-Bank.
Lee blamed the Financial Services Commission for creating such risks by having favorites. “The FSC is playing Squid Game, saving just one company and killing all the others,” Lee said.
FSC Chairman Kim Byung-hwan acknowledged Lee’s concerns and cited ongoing efforts to improve anti-money laundering regulations and investor protection. He mentioned that the FSC will look into the issues of market monopolies and structural risks associated with such a concentration.
A bank run involving K-Bank could have worldwide implications as the South Korean won is a significant fiat currency traded against cryptocurrencies, leading to global trading volumes in the first quarter of 2024.
K-Bank aims to launch an initial public offering valued at $730 billion, with an expected valuation of $4 billion by the end of October.
Lawmaker Lee expressed skepticism about the FSC’s approval of K-Bank’s IPO application, but Kim responded by saying, “I believe the FSC may have conducted a thorough review.”
Hong Kong is anticipated to issue more licenses for crypto exchanges by the end of the year, according to Julia Leung, CEO of the Securities and Futures Commission (SFC) in the city.
The SFC’s website reveals that there are still 14 applicants vying for Hong Kong’s crypto license, with only three exchanges currently approved for licensed crypto operations in the city.
On October 4, Hong Kong Virtual Asset Exchange Limited became the latest addition to the list of licensed exchanges, joining HashKey and OSL.
Meanwhile, 14 exchanges have withdrawn their applications, and one was returned by the SFC. The most recent withdrawal was from Hong Kong Digital Asset Xchange (HKDAX) on October 9.
HKDAX made headlines for submitting a crypto license application three months after the deadline.
Yohan Yun is a multimedia journalist who has been covering blockchain since 2017, contributing as an editor to crypto media outlet Forkast and reporting on Asian tech stories for Bloomberg BNA and Forbes. In his free time, he enjoys cooking and experimenting with new recipes.
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