2 hours ago
CryptoQuant CEO Ki Young Ju believes China whitethorn person already sold the 194,000 Bitcoin (BTC) seized from the infamous PlusToken scam successful 2019.
In a Jan. 23 post, Ki shared on-chain information indicating that the confiscated assets were mixed and distributed to crypto exchanges, including Huobi, alternatively than being retained successful the nationalist treasury.
On-chain analysis
The PlusToken scandal, 1 of the largest crypto Ponzi schemes, resulted successful Chinese authorities seizing important Bitcoin reserves. Official statements from the Chinese Communist Party (CCP) claimed the funds were “transferred to the nationalist treasury” but did not clarify whether the assets were sold.
Over $2 cardinal successful Bitcoin was funneled into scam wallets during the PlusToken epoch earlier its illness successful 2019. The consequent seizure by Chinese authorities raised questions astir the destiny of the recovered funds.
Ki argued that the question of these coins done mixers and exchanges suggests they were liquidated. He added:
“There’s nary constituent successful utilizing mixers and aggregate exchanges if they didn’t merchantability it.”
Blockchain information highlighted by Ki corroborates the travel of Bitcoin from PlusToken wallets to exchanges during the 2nd fractional of 2019. The investigation shows an influx of funds, suggesting that the coins were converted to fiat currencies astatine the time.
According to Ki:
“A censored authorities holding censorship-resistant wealth feels unlikely.”
Top Bitcoin holder
Despite the CCP’s deficiency of transparency, China is inactive officially listed arsenic holding 194,000 Bitcoin, according to caller information connected authorities and country-level holdings. This fig positions China arsenic 1 of the largest Bitcoin-holding entities globally.
However, Ki’s insights situation the credibility of this claim, arguing that the lack of updated CCP disclosures aligns with the on-chain grounds of a sale. CryptoQuant’s interflow investigation suggests the coins were mixed earlier reaching exchanges, a signifier typically associated with liquidation.
Ki said:
“I spot on-chain data, not the CCP.”
If true, the revelation could person implications for China’s perceived crypto strategy. While Bitcoin is considered censorship-resistant, the likelihood of the CCP retaining ample amounts of the plus appears slim.
Industry experts accidental the liquidation of specified a important measurement of Bitcoin could person contributed to marketplace movements successful 2019. The destiny of PlusToken’s seized Ethereum holdings remains unclear, adding different furniture of uncertainty to the CCP’s attack to confiscated integer assets.
The station CryptoQuant CEO believes China whitethorn person sold its full 194,000 Bitcoin stash successful 2019 appeared archetypal connected CryptoSlate.
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