- 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.
🇨🇳 China sold 194K #Bitcoin already, imo.
PlusToken’s seized BTC in 2019 was sent to Chinese exchanges like Huobi. The CCP said it was “transferred to the national treasury” without clarifying if it was sold.
A censored regime holding censorship-resistant money feels unlikely. pic.twitter.com/ODHD9rSR0d
— Ki Young Ju (@ki_young_ju) January 23, 2025
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.”
The CCP hasn’t confirmed a sale, which is why people still talk about the 194K BTC.
On-chain data tells a different story: they sold everything, using mixers to distribute funds across exchanges in 2019.
I trust on-chain, not the CCP.
— Ki Young Ju (@ki_young_ju) January 23, 2025
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.”
If China sold, it’s bullish. Another huge overhang is gone.
But they could have hidden it between smaller addresses for security reasons instead of selling.— alexfilippov.eth ∞ 🇬🇪 (@Alex_Luxiano) January 23, 2025
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.