CryptoQuant’s CEO Ki Young Ju believes that China could have sold the 194,000 Bitcoins (BTC) from the PlusToken scam.
Ki posted on Jan. 23 that data from the blockchain indicated that confiscated assets had been mixed up and distributed by crypto exchanges like Huobi rather than retained in the national Treasury.
Analyse of On-Chain Analysis
Chinese authorities seized Bitcoins after the PlusToken scam, which was one of largest crypto Ponzi Schemes. Chinese Communist Party official statements stated that funds had been seized. “transferred to the national treasury”’But did not make clear whether assets were purchased.
PlusToken was in existence from 2013 to 2019, and during that time, over $2 billion worth of Bitcoins were funneled through scam wallets. After the collapse of PlusToken in 2019, Chinese authorities seized the funds.
Ki said that because these coins moved between mixers and exchanges, it suggests they have been liquidated. He continued:
“There’s no point in using mixers and multiple exchanges if they didn’t sell it.”
Ki’s analysis of blockchain data corroborates that Bitcoin was transferred from PlusToken Wallets to Exchanges in the 2nd half of 2019 The data shows that there was an inflow of Bitcoins, which is consistent with the fact that they were being converted into fiat currencies during the second half of 2019.
Ki:
“A censored regime holding censorship-resistant money feels unlikely.”
Top bitcoin holders
Despite the CCP’s lack of transparency, China is still officially listed as holding 194,000 Bitcoin, according to recent data on government and country-level holdings. China’s Bitcoin holdings are now among the biggest in the world.
However, Ki’s insights challenge the credibility of this claim, arguing that the absence of updated CCP disclosures aligns with the on-chain evidence of a sale. CryptoQuant’s interflow analysis suggests the coins were mixed before reaching exchanges, a practice typically associated with liquidation.
Ki Said:
“I trust on-chain data, not the CCP.”
If true, the revelation could have implications for China’s perceived crypto strategy. While Bitcoin is considered censorship-resistant, the likelihood of the CCP retaining large amounts of the asset appears slim.
Experts in the industry say that liquidating such a large volume of Bitcoin may have influenced market fluctuations for 2019. The fate of PlusToken’s seized Ethereum holdings remains unclear, adding another layer of uncertainty to the CCP’s approach to confiscated digital assets.
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