Has China ‘Dumped’ PlusToken Bitcoin, Ethereum & Co?

Source: Adobe / Alexander Kolikov

Members of the crypto community wonder what happened to a huge crypto stash totaling $ 4.2 billion that was confiscated by the Chinese authorities who shut down the crypto community PlusToken Crypto scam earlier this year – some asked if the funds had been “dumped” into the market months ago, others suggested the state might still hold the funds.

According to a court report released yesterday and put online From The Block, authorities claimed that during their raids they had seized the following from seven fraud thought leaders:

The court stated that it intends to “process” the crypto “in accordance with the relevant laws” with the “proceeds” going to the Chinese treasury.

And internet-based Twitter experts believe the tokens were actually sold, although it is still known exactly how, where and when the Chinese authorities managed to do it, as crypto exchanges have been banned in mainland China since September 2017.

The Chinese police completed an 18-month international hunt for the fraudsters earlier this year and began sentencing convicted ringleaders as early as September.

However, some Twitter-based observers have stated that they believe the tokens have been sold (or “dumped”) said one) at the beginning of the year – believing the news may have been “stale” by “six months or more”.

An analyst named @ErgoBTC claimed to have attributed the sales to this Huobi Platform that goes back to 2019 with a Twitter user opinion that this was simply a case where the Chinese government “got away from the saga”.

Still a asserts that this was just further proof that China’s crypto policy is crystal clear: Beijing will continue to crack down on tokens unless it maintains an iron grip on them. These thoughts echo the views of a prominent Japanese China observer who also claimed that China has a centralized approach to digital funding.

However, the possibility of a major state – especially a superpower – becoming a major player in the crypto markets seems to have provided some food for thought.

As previously reported, following a massive crypto seizure by a dark web hacker, the American government is becoming a bitcoin whale in its own right.

At the time of writing (12:45 UTC), BTC is trading at USD 17,005 and is rebounding from USD 16,700 that was hit earlier today. The price is still down almost 2% on the day and 7% on the week. ETH changes hands at USD 512 and is also rebounding from USD 505. ETH is down more than 2% in one day and has reduced its weekly gains to less than 1%.