Bitcoin News: Did China Liquidate the 194000 BTC Reserve Linked to the PlusToken Scam?

CryptoQuant CEO Ki Young Ju recently revealed that Chinese authorities have liquidated a significant amount of Bitcoin. These coins were linked to the PlusToken scam.

Key Takeaways

Ki Young Ju, the CEO of CryptoQuant, has recently shared his insights regarding the sale of Bitcoin by Chinese authorities, which was reportedly linked to the PlusToken scam.

According to Ju's analysis, on-chain data suggests that the confiscated assets were mixed and distributed to various crypto exchanges, including Huobi, over a period of time.

His observations indicate that most of the funds were initially moved in batches before being sent for sale, with a network of crypto mixers being employed to obscure the origins of the transactions.

These comments have reignited discussions about the fate of the substantial Bitcoin reserve built by Chinese authorities in 2019, following their confiscation of the cryptocurrency as part of the PlusToken crackdown.

While the government announced that these digital assets were “transferred to the national treasury,” it has never clarified whether they were keeping or selling them.

Now, evidence points to a large-scale offloading that may have occurred through local exchanges. This revelation has left the community on edge, as the market is arguing whether this Bitcoin news is a rumor or a truth. It could impact the increased selling pressure on the Bitcoin price. As uncertainty continues, traders are closely monitoring the situation for further developments.

Bitcoin reserves linked to PlusToken fraud saw a rapid decline.

In 2019, the Bitcoin reserves taken from China's confiscation of the PlusToken scheme were valued at approximately $4 billion at the time, but its worth has shifted drastically since then.

It has seen a major increase due to several factors, boosting it to about $19.8 billion based on the price at the time of writing.

CryptoQuant CEO Ki Young Ju observed that PlusToken's Bitcoin holdings saw a rapid churn after the confiscation, suggesting that the funds were sold through a network of crypto mixers.

These mixers obscure the origins of transactions, making it difficult to trace the movement of the funds. In a X post, Ju stated, “On-chain data shows the CCP sold everything using mixers to distribute funds across exchanges in 2019.”

He argued that using mixers would be pointless if the government's intention was to hold on to the Bitcoin, further supporting the theory of its sale.

CryptoQuant CEO claims China may have sold 194,000 BTC.

CryptoQuant CEO Ki Young Ju expressed his belief on Twitter that China may have already offloaded the 194,000 Bitcoin, basing his theory on historical trends and blockchain activity.

However, there is no official confirmation from Chinese authorities regarding this sale. This Bitcoin news has divided the crypto community, with some skeptics questioning his claims.

Bitcoin reserves linked to the PlusToken fraud saw a rapid decline, according to data from Valkyrie Research.

Between August and December 2019, the reserves saw a rapid decline, as reported by Valkyrie Research. At the beginning of that period, the reserves held by Chinese authorities amounted to 171,000 BTC.

However, by the end of the year, these reserves had dwindled to below 50,000 BTC. Although the Chinese government never formally acknowledged these sales, the transactions coincided with market activities during that year.

The asset went on to experience an impressive rebound, eventually breaching the $100,000 threshold in 2024.

If the sale of a significant portion of the seized Bitcoin reserve is confirmed, market participants may react with fear, leading to a potential selling spree driven by concerns over lost gains and trust issues.

Such a scenario could undermine the ongoing efforts to increase the Bitcoin price, potentially preventing it from breaking through that threshold if the price struggles to maintain its support at the $100K level. This would erode optimism for reaching even larger targets, and in this case, even whales might be compelled to sell.

As a result, many in the community hope this dire fear does not materialize. At the time of writing, the Bitcoin price is trading above the $100K mark, specifically at $104,676.

The token remained above major EMA bands, indicating some level of stability. However, the uncertainty surrounding potential sales continues to loom over the market.