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According to Ki Young Ju, CEO of CryptoQuant, Chinese authorities have already sold their entire stash of 194,000 Bitcoin, which was originally seized during the 2019 PlusToken scandal. Ju stated on X (formerly Twitter) that these Bitcoins were sent to Chinese exchanges like Huobi, suggesting that a large-scale sell-off had taken place.
Bitcoin Reserves and China’s Role
The PlusToken scandal remains one of the biggest crypto frauds in history. This Ponzi scheme, which ran between 2018 and 2019, accumulated an enormous amount of Bitcoin, estimated at 1-2% of the total circulating supply at the time.
In 2019, Chinese authorities seized approximately 194,000 Bitcoin, along with other crypto assets, stating that these would be transferred to the national treasury. However, at the time, it was unclear whether these Bitcoins would be held or sold.
Now, Ki Young Ju claims that these PlusToken Bitcoin reserves were ultimately sold via local exchanges. “The use of mixers and multiple exchanges suggests that these reserves were liquidated on a large scale,” Ju said. He backed up his claims with on-chain data and screenshots, showing significant selling activity.
Impact of the PlusToken Scandal on the Bitcoin Market
The PlusToken fraud had a major impact on the Bitcoin market in 2019.
- In the first half of 2019, Bitcoin surged by 300%, rising from around $3,000 to nearly $14,000. This massive rally was partially attributed to artificial demand created by PlusToken as they acquired large amounts of Bitcoin.
- However, in the second half of 2019, PlusToken began offloading their reserves, leading to a significant price drop. By the end of the year, Bitcoin had fallen back to around $6,000.
- Analysts described this as an “indirect liquidity attack” on Bitcoin, as the rapid sell-off placed immense downward pressure on the market.
No Official Confirmation from Chinese Authorities
The Chinese government has never explicitly stated whether they sold or retained the seized Bitcoin. Ju’s remarks have rekindled concerns about transparency in how authorities handle confiscated crypto assets.
At present, Ki Young Ju’s claim that Chinese authorities have fully liquidated their PlusToken Bitcoin holdings seems plausible, given the on-chain transaction evidence. However, the exact timing and scale of the sell-off remain disputed, particularly considering the massive impact such a sale could have had on the global crypto market.
Btcoin price Analysis
Major Drop: BTC experienced a sharp decline from ~$103K to ~$98K, breaking key support levels.
Indicators:
- SMA (short & long) shows a clear downtrend.
- RSI was oversold and now recovering above 30.
- Volume Spike suggests potential reversal or short covering.
Outlook: Bitcoin is bouncing back from the lows, but needs to reclaim $100K for bullish confirmation! Watch resistance at $99.5K-$100K!
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