[2019-08-15] A Mysterious $3B Chinese Ponzi Scheme Is Being Blamed for Bitcoin’s

[TheWolf666]

https://beincrypto.com/a-mysterious-3b-chinese-ponzi-scheme-is-being-blamed-for-bitcoins-price-collapse/

A Mysterious $3B Chinese Ponzi Scheme Is Being Blamed for Bitcoin’s Price Collapse

This will crash the Bitcoin market when these will be for sell! Huge amount of Bitcoin to be dumped soon.

[1713272225]

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[1713272225]

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[1713272225]

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[target]

Did they successfully sold the 1000BTC to Bittrex and Huobi?

74,000 BTC and another 95,000 BTC to their wallets. This scheme is pretty big but how come people here in the forum didn't talk about this PLUS token? I haven't really encounter a thread about them here in the forum.

[Carlton Banks]

Did they successfully sold the 1000BTC to Bittrex and Huobi?

74,000 BTC and another 95,000 BTC to their wallets. This scheme is pretty big but how come people here in the forum didn't talk about this PLUS token? I haven't really encounter a thread about them here in the forum.

where is the evidence of any of this?


smells of a last ditch attempt at manipulating the market downwards before a break upwards

[TheWolf666]

As it says in the article, several factors have kept this news under the radars, like the fact it happens in China, and crypto exchanges are illegal there.
But this article is from Today, it won't take long before it spreads and we will know more soon.

[Harlot]

That's strange why would they partly sold some of the BTC in a U.S. based crypto exchange? Selling BTC in Bittrex could only mean that there is at least a person operating the scam in U.S. soil. I could understand why some of the cryptocurrencies are sole in Huobi since the scam originated in China but why would they sell some in Bittrex? Or did they just made themselves an easy target for the authorities since now they have involved a foreign based crypto exchange to their mode of escape because I'm pretty sure moving that huge amounts of crypto would require some KYC in both exchanges.

[TheWolf666]

Same at Zero Hedge
https://www.zerohedge.com/news/2019-08-15/bitcoin-back-below-10k-3-billion-china-ponzi-allegedly-dumps-crypto

[logileno]

That amount a bitcoin omg. I think something else behind of it. Think that 70.000,00 BTC how is it possible?
And if it is true again we are seeing crowdfunding is can create cathastrophic effect.
twitter link:
https://twitter.com/DoveyWan/status/1161686134314848256

Scammer adresses:
14BWH6GmVoL5nTwbVxQJKJDtzv4y5EbTVm (95228 $BTC)
31odn4bxF2TgM4pD7m4hdSr1vGMsjh9ugV (68,562 $BTC)
33FKcwFhFBKWHh46Ksmxs3QBu8HV7h8QdF (37,922 $BTC)
eospstotoken (26,312,329 $EOS)
0xF4a2eFf88a408ff4c4550148151c33c93442619e (789,525 $ETH)

[Carlton Banks]

Scammer adresses:
14BWH6GmVoL5nTwbVxQJKJDtzv4y5EbTVm (95228 $BTC)
31odn4bxF2TgM4pD7m4hdSr1vGMsjh9ugV (68,562 $BTC)
33FKcwFhFBKWHh46Ksmxs3QBu8HV7h8QdF (37,922 $BTC)
eospstotoken (26,312,329 $EOS)
0xF4a2eFf88a408ff4c4550148151c33c93442619e (789,525 $ETH)

that is "evidence" that anyone can present. i.e. not evidence of this story

those addresses are publicly available, you're foolish to believe randomers on a social media platform

[bbc.reporter]

@Carlton Banks. Dovey Wan is not a randomer.

Dovey Wan is a partner at Primitive Ventures, a crypto asset investment fund, and a member of CoinDesk’s advisory board.

Source https://www.coindesk.com/cryptocurrency-in-china-over-the-counter-under-the-table

There is no reason for her to make up this story.

[Carlton Banks]

There is no reason for her to make up this story.

yes there is

[freedomgo]

Did bitcoin price collapse? I don't see that, bitcoin dump a bit but were able to come back now.

According to the news, that's only $3B and it was not sold one time, it has been transferred from different holders and different wallets.
With the trading volume of BTC which is over $20B daily, it could only less likely effect on the BTC price.

[Kakmakr]

The MMM Ponzi scheme is one of the largest Ponzi schemes that I know about and in some countries people use Bitcoin to do the payments. A lot of these schemes fail and the immediate backlash is that people are blaming Bitcoin and not the Ponzi scheme for their losses. The media reports all point to a Bitcoin Ponzi scheme, but the fact is that it was only used as a payment option.

We have seen this with a lot of Ponzi schemes lately, because Bitcoin transactions is pseudo anonymous and the people behind these bitcoins can quickly move those coins over the border, without some third party getting involved. <Banks can froze accounts, but Bitcoin addresses cannot be frozen> 

[joelsamuya]

The MMM Ponzi scheme is one of the largest Ponzi schemes that I know about and in some countries people use Bitcoin to do the payments. A lot of these schemes fail and the immediate backlash is that people are blaming Bitcoin and not the Ponzi scheme for their losses. The media reports all point to a Bitcoin Ponzi scheme, but the fact is that it was only used as a payment option.

We have seen this with a lot of Ponzi schemes lately, because Bitcoin transactions is pseudo anonymous and the people behind these bitcoins can quickly move those coins over the border, without some third party getting involved. <Banks can froze accounts, but Bitcoin addresses cannot be frozen> 

Yes, this is the problem. When a scam is using the US Dollar as medium of payment, the media will not be reporting that scam as US Dollar scam but with those using Bitcoin the report will most likely smear the good name of Bitcoin. Seems to me that the media has not yet fully understand the whole Bitcoin thing.

Anyway, with the Plus Token ponzi scam, millions are victimized and huge cryptocurrencies were amassed as the result. Sadly, even authorities could not do to stop the assets from being laundered using many ways and means. I am just glad that I am not one of the many participants of this scheme and scam.

Unfortunately, this is not going to be the last of this nature as more and more people can easily be nudge to release their hard-earned money for the promise of greater returns. As long as we are greedy, there will always be greedier people who can get into us sometime.

[1Referee]

This is classic manipulation of news. Great timing.

People sell out of fear because they believe these scammers will dump their bags. What happens is that the panic sellers are crashing the price, but as stupid as people are, they believe that the price is going down because these scammers are selling. One way to look at this positively is that weak hands are eliminating themselves. 

How many times have we seen this happen before? Come one people. If it's too difficult to handle then this place isn't for you.

[Carlton Banks]

This is classic manipulation of news. Great timing.

exactly

want to exploit a natural downtick in BTC price? why not save up some bad news stories, dump them on news websites when the market dips, then buy the dip when people panic sell

 

People sell out of fear because they believe these scammers will dump their bags.

and there's no proof (in this case) that any scammers are doing this, or that they even have bags to dump.


anyone helping to prop up unfounded stories that move the market should be viewed with suspicion (at a minimum, they're dishonestly riding the waves of these manipulative stories, hoping to pick up cheap BTC before the correction upwards, anyone can do this without actually being a part of the original rumour)

that includes news websites "simply reporting bare facts" as well as individuals doing the same. If you want to report this sort of thing, it's important to emphasize that there's scant or no evidence, and that it's a possible attempt to manipulate the price short term

[1Referee]

Totally right. If people think logically, an exchange would have put a stop to this selling if it was actually going on because they won't allow scammers to empty their order books.

People remember the 5000BTC dump on Bitstamp not that long ago? The exchange started an investigation because it left a massive impact on their order book. This is was a legit market sale and got the exchange triggered. Imagine what happens when scammers are dumping. Exchanges would not allow this activity to take place.

On top of that, selling such a large number of coins means that you have verified yourself, and thus the exchange has all the information it needs about you. Do you think scammers will verify themselves after stealing an insane amount of coins?

[Lucius]

This scheme is pretty big but how come people here in the forum didn't talk about this PLUS token? I haven't really encounter a thread about them here in the forum.

Plus token and Cloud token are mentioned several times in the forum, you just did not notice any of them. Both tokens are more than obvious ponzi / scam projects, and what to say about people who invest in such projects? https://bitcointalk.org/index.php?topic=5158024.0

I think that this ponzi has nothing to do with recent dump, this would happen no matter what happened or not. Whom to blame for all the previous downs in last 2-3 months? If anyone is to be blamed for this time, why not Binance system upgrade two days ago.

[stompix]

That amount a bitcoin omg. I think something else behind of it. Think that 70.000,00 BTC how is it possible?
And if it is true again we are seeing crowdfunding is can create cathastrophic effect.
twitter link:
https://twitter.com/DoveyWan/status/1161686134314848256

Lols, here it what the guy claims:

Just dig my old chats (was in their chat rooms) there are two others BTC addresses belong to PlusToken

74K $BTC 🤯🤯🤯1Dd5VTCkRtMG8bpuHZrjkLf1TeZ8cwZGDe

95K $BTC 🤯🤯🤯
14BWH6GmVoL5nTwbVxQJKJDtzv4y5EbTVm

So,
1Dd5VTCkRtMG8bpuHZrjkLf1TeZ8cwZGDe was first used in 2015
I somehow doubt the scammers used a 4 years old address to launder their money

Also,  14BWH6GmVoL5nTwbVxQJKJDtzv4y5EbTVm was emptied in May (3 months ago)

Oh ..the horror!!! Somebody think oh the chi price

Let's pick some random addresses with large amounts and if the coins move let's run to the hills screaming!

@Carlton Banks. Dovey Wan is not a randomer.
Dovey Wan is a partner at Primitive Ventures, a crypto asset investment fund, and a member of CoinDesk’s advisory board.

Source https://www.coindesk.com/cryptocurrency-in-china-over-the-counter-under-the-table
There is no reason for her to make up this story.

A blogger and a partner at an investment fund with 2-10 employees.
Definition of that...nobody!

[BitHodler]

On top of that, selling such a large number of coins means that you have verified yourself, and thus the exchange has all the information it needs about you. Do you think scammers will verify themselves after stealing an insane amount of coins?

That's makes sense. People have repeatedly pointed at dozens and dozens of 100BTC sales on Binance, which would take an awful lot of time to withdraw with a limit of only 2BTC per day.

It requires level 2 verification to withdraw 100BTC per day, which still means that it would take a long time to empty your Binance account. With how active CZ is on social media, he would have singlehandedly whooped them.

The 100BTC sales are very likely whales selling into their own buy orders to get their volume count up (higher volume = lower trading fees). People need to stop believing news outlets.

[buwaytress]

Got to credit the fact that these guys used just enough evidence (as Carlton points out, evidence of something happening is not evidence of linkage) to resemble credibility and create just enough hype. Didn't last, and wouldn't last even if it were true.

Also, I'm somewhat from the industry myself, as a freelancer, but I don't mind saying that you should always be aware of people with that kind of corporate reputation. Doesn't take much more than business sense to become an advisor in certain circles.