Has China sold the $3 billion in crypto-currencies yet?

Ethereum, Bitcoin, Ripples XRP: Has China sold the $3 billion in crypto-currencies yet?

It has just become known that there has been a massive development in the PlusToken case. PlusToken was a crypto-Ponzi scheme from the 2019 era, which succeeded in attracting most users in Asia to deposit Bitcoin, Ethereum, EOS and a range of other digital assets worth billions.

As recently reported by The Block, $4.2 billion worth of crypto money by Bitcoin Superstar was seized by lawmakers in China. It was rumoured that many of PlusToken’s ringleaders were still on the run, although the report may have refuted that rumour.

The stocks allegedly seized by the Chinese authorities are considerable: 194,775 BTC, 833,083 ETH, 1.4 million LTC, 27.6 million EOS, 74,167 DASH, 487 million XRP, 6 billion DOGE, 79,581 BCH and 213,724 USDT.

While these assets were worth only about USD 2 billion at the beginning of the fraud, their value today is USD 4.2 billion.

It is unclear whether these coins have already been sold or not.

The 2019 correction in the crypto market is said to have been caused by an influx of selling pressure from Bitcoin and Ethereum on exchanges such as Huobi, apparently from PlusToken-related addresses. This report seems to have contradicted that – doesn’t it?

Has the Chinese government sold billions of stolen crypto-currencies?

According to the Chinese crypto reporter „Wu“, it is likely that the government has sold a large amount of the coins:

„The Chinese government confiscated 190,000 BTC and 830,000 ETH from the Plustoken MLM case with a total value of billions of dollars. The official announcement seems to indicate that the government sold them and returned them to the central treasury managed by the central bank“.

This is consistent with the block chain analysis, which showed that a large proportion of the plus token coins have not yet moved, while most of them were sold at the beginning of this year or at the end of last year on stock exchanges such as OKEx and Huobi.

This also removes the confusion about how PlusToken funds could be deposited on these centralised exchanges without the authorities having to freeze the funds.

Matthew Graham, a China-based investor focused on block chaining, has confirmed this view. According to Graham, after reading the court documents, it is likely that the coins were „largely sold“, so there is no need for FUD.

It is unclear how China will sell the rest of the money, if at all.

It is also unclear at this stage whether China will try to return the funds to the users concerned. Since the funds have passed through mixed accounts, it is not known whether there is a way to easily track who has sent what where over time.