CaptainDork shares a report from NewsBTC: Bitcoin lost billions of dollars worth of valuation within a 30-minutes timeframe as a Chinese cryptocurrency scammer allegedly liquidated its steal via over-the-counter markets. The initial sell-off by PlusToken caused a domino effect, causing mass liquidations. PlusToken, a fraud scheme that duped investors of more than $2 billion, dumped huge bitcoin stockpiles from its anonymous accounts, according to Chainalysis. The New York-based blockchain consultancy cited an internal investigation that showed PlusToken scammers on a systematic crypto liquidation spree. Some of them have been actively selling bitcoin since June — right after the cryptocurrency established a year-to-date high of circa $14,000. According to Chainalysis, PlusToken had cashed out at least $185 million worth of bitcoin via OTC desks. “We can say that those cashouts increased volatility in Bitcoin’s price and that they correlate significantly with Bitcoin price drops,” says Chainalysis.

“Chainalysis’s study shows that the entity still holds a massive stash of bitcoin that it might liquidate at a later stage,” adds NewsBTC. “That raises the prospects of more price crashes unless there is an adequate demand to match the scammer’s supply flow.”

Read more of this story at Slashdot.

Source: Slashdot – How a Whale Crashed Bitcoin To Sub-,000 Overnight