Almost Half of PAX transfers Tied to Ponzi Schemes, According to Report

Almost Half of PAX transfers Tied to Ponzi Schemes, According to Report

By Abhimanyu Krishnan | News | 10 Jun 2020

A new report released by Coin Metrics on June 9 has resulted in some interesting conclusions by the data analytics firm. After looking at transactions over the past year, the firm said that a few accounts accounted for most of the network activity, and are linked to an alleged Ponzi scheme called MMM BSC.

The two most active accounts on Paxos are reportedly linked to MMM BSC, with more than 40% of PAX transfers apparently linked to the scheme.


The report states that there seems to be a correlation between PAX and MMM BSC acitivity.


MMM was behind one of the largest Ponzi schemes ever executed, with 5 - 10 million people said to have lost their savings. In 2011, it reappeared as MMM Global and soon began touting Bitcoin.

The report offers other key takeaways, such as the fact that 6 accounts or fewer wallets own over 80% of the supply for Gemini Dollar, Binance USD, Tether/Tron, USDK, and HUSD. It also noted that the most active Tether addresses on TRON were responsible for more than 90% of corresponding transfers on some day. This activity was also linked to ‘dividend payouts’, as shown below.


Tether on TRON activity linked to dividend payouts, sometimes accounting for the majority of transfers.

Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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