CryptoQuant CEO speculates on China selling seized Bitcoin from PlusToken scam
CryptoQuant CEO Ki Young Ju has raised concerns that China may have already sold the 194,000 Bitcoin (BTC) seized from the infamous PlusToken scam in 2019. According to on-chain data shared by Ki, the confiscated assets were not retained in the national treasury but instead mixed and distributed to various crypto exchanges, including Huobi.
On-chain analysis
The PlusToken scandal, known as one of the largest crypto Ponzi schemes, led to Chinese authorities seizing a significant amount of Bitcoin. While official statements from the Chinese Communist Party (CCP) suggested that the funds were transferred to the national treasury, it was not explicitly mentioned whether the assets were sold.
During the PlusToken era, over $2 billion worth of Bitcoin was funneled into scam wallets before the scheme collapsed in 2019. The subsequent seizure by Chinese authorities raised questions about what would happen to the recovered funds.
Ki suggested that the movement of these coins through mixers and exchanges indicates that they were likely liquidated. He emphasized, “There’s no point in using mixers and multiple exchanges if they didn’t sell it.”
Top Bitcoin holder
Despite China being officially listed as holding 194,000 Bitcoin, recent data on government and country-level holdings, Ki’s analysis challenges the credibility of this claim. He pointed out that the lack of updated CCP disclosures aligns with on-chain evidence of a sale. CryptoQuant’s interflow analysis suggests that the coins were mixed before reaching exchanges, a common practice associated with liquidation.
Ki stated, “I trust on-chain data, not the CCP,” highlighting the potential discrepancies in reported holdings versus actual movements of seized assets.
If true, the implications of China selling a significant volume of Bitcoin could have impacted market movements in 2019. The fate of PlusToken’s seized Ethereum holdings remains uncertain, adding further complexity to China’s approach to confiscated digital assets.