It has emerged that the Chinese government may have sold 194,000 BTC that it holds. On the 23rd, Ki Young Ju of the blockchain analysis platform CryptoQuant pointed this out.
🇨🇳 China sold 194K #Bitcoin already, imo.
— Ki Young Ju (@ki_young_ju) January 23, 2025
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
According to Ki, it is highly likely that the Chinese government sold Bitcoin (BTC) that it seized from the large-scale Ponzi scheme PlusToken in 2019. This amounted to 194,000 BTC, which is equivalent to about $20 billion (about 3.124 trillion yen) at the time of writing.
Ki analyzed that these Bitcoins were sent to Chinese cryptocurrency (virtual currency) exchanges such as Huobi. The Chinese government explained that the Bitcoins were "transferred to the national treasury," but did not mention whether they were sold or not.
According to Bitcoin Treasuries, which tracks the amount of Bitcoin held by each country, the Chinese government held 194,000 BTC, second only to the US government. If the Chinese government sells the Bitcoin this time, its holdings will be zero.
The United States and other countries are accelerating their efforts to consider adopting Bitcoin as a reserve currency. Given this situation, China's move goes against the global trend.
The differences in stance between the US and China are likely to accelerate in the future.
On the 23th, President Trump signed an executive order to establish a Presidential Working Group on Crypto Assets. This executive order includes provisions ordering the formulation of a regulatory framework for digital assets, including not only Bitcoin but also stablecoins, and an evaluation for the establishment of a strategic national reserve.
The executive order also emphasizes that the US will take a leadership role in digital assets, including crypto assets. It also includes provisions prohibiting the issuance and promotion of CBDCs (central bank digital currencies).
China has been developing a digital yuan as a CBDC for many years. On the other hand, the US will go against this movement, revealing the significant differences in US and Chinese policies here as well.
Reference: Bitcoin Treasuries
Image: Shutterstock
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