CryptoQuant CEO Reveals China’s Sale of Seized PlusToken Bitcoin
Ki Young Ju, CEO of CryptoQuant, claims that the Chinese government has liquidated the entire 194,775 Bitcoin stash seized from the PlusToken scam in 2019. Despite China’s official statements about transferring these assets to the national treasury, on-chain analysis by CryptoQuant shows that the Bitcoin was likely sold through mixers and exchanges. This contradicts China’s narrative and aligns with prior allegations of selling PlusToken assets in 2019-2020, during a period of strict crypto regulation. This move involved exchanges such as Huobi and influenced significant market movements. The PlusToken scandal impacted two million investors, leading to substantial crypto confiscations. Ju’s findings underline the improbability of China holding such a volatile asset and showcase the potential ramifications on the crypto market.
Bearish
The revelation that China has allegedly sold the seized PlusToken Bitcoin could lead to negative sentiment in the crypto market, particularly if traders believe that more large-scale government-related sales could occur. This news also raises concerns about the influence of regulatory actions on Bitcoin’s price stability, as the liquidation contradicts previous official statements and could signal further intergovernmental crypto sales. Such uncertainty about asset holdings and sales typically results in increased market volatility, discouraging bullish market movements in the short term.