CryptoQuant CEO: China Sold PlusToken Bitcoins

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  • CryptoQuant CEO believes that China sold BTC seized from the PlusToken Scam
  • The executive said it’s unlikely that a “censored regime [holds] censorship-resistant money”
  • Chinese authorities haven’t confirmed the sale

The CEO of CryptoQuant, a blockchain analytics platform, Ki Young Ju, believes that the Chinese government sold BTC confiscated from the PlusToken scam. Although Chinese Authorities haven’t confirmed selling the seized BTC worth close to $20 billion, Ju thinks it’s unlikely the Chinese government still holds the coins because BTC is censorship-resistant and the country is ruled by a “censored regime.” On-chain data shows that the funds were “mixed” and deposited into exchanges in 2019, strengthening Ju’s argument.

BTC Transferred to the National Treasury or Sold?

In an X thread, Ju said that the funds were sent to different exchanges including Huobi. The country revealed that the BTC was “transferred to the national treasury” but failed to disclose whether it was preparing to liquidate the seized stash.

The CryptoQuant executive argued that China used crypto mixers when sending the funds to exchanges, a move that’s odd “if they didn’t sell” the BTC. When asked why data shows that China is among the top countries holding bitcoin, he said that “on-chain data tells a different story.”

Ju added that the country hasn’t disclosed the sale, keeping people glued on the seized BTC stash. The revelations come roughly five years since Chinese authorities busted the PlusToken Ponzi scheme. Over 100 individuals have been arrested in connection with the scheme.

Not Everyone Believes Ju

According to some of those commenting on Ju’s post, it’s also likely that China distributed the funds into “smaller addresses for security reasons instead of selling.” Others lamented that the funds belonged to the scam’s victims “and they should be returned to them.”

The revelations come four years after a Chinese court sentenced 11 PlusToken scammers to between two and 11 years in prison.

With Ju claiming that the Chinese government secretly sold the seized bitcoin, it’s to be seen whether the country will clarify why it moved the funds into different exchanges.

 

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