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China Could Secretly Hold $6 Billion Of Bitcoin, Ethereum And Other Crypto—Triggering A Serious Price Crash Warning

China, once a major bitcoin, ethereum and cryptocurrency player, may still hold about $6 billion worth of cryptocurrencies after seizing them in 2019.

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The cryptocurrency that China allegedly holds comes from the seizure of bitcoin, ethereum and other coins linked to the 2019, $6 billion PlusToken Ponzi scheme – with some now warning of a crypto price crash if China suddenly would download coins.

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“[The] government of China is a crypto whale,” Ki Young Ju, the CEO of blockchain data analytics company Cyptoquant, placed to Twitter. “Chinese authorities seized 194,000 bitcoin, 833,000 ethereum and others from the PlusToken scam in 2019. They forfeited these assets worth $6 billion to the national treasury.”

If China still holds the bitcoin and ethereum they seized, the country will rank among the world’s biggest crypto whales, dwarfing the likes of Microstrategy and Coinbase.

“Sell-side liquidity of miners, institutional investors and retail investors is next to nothing when you compare governments,” Ki Young Ju said via Twitter DM, adding in a separate Twitter post that the government of Bulgaria could hold more than 200,000 bitcoins .

Bitcoin
BTC
, Ethereum and other cryptocurrencies are regularly seized by law enforcement around the world. The US government has sold most of the bitcoin it has seized over the years, including from the 2016 Bitfinex hack and Silk Road operator Ross Ulbricht, but is thought to still hold just over $4 billion worth of bitcoin .

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“Bitcoin dropped from $30,000 to $17,000 due to luna sell-side liquidity,” Ki Young Ju said, pointing to the collapse of the terra luna algorithmic stablecoin ecosystem that includes the Luna Foundation Guard’s treasure bitcoin that is designed to support the cryptocurrencies. “It was about 80,000 bitcoin, so that’s basically twice [the terra luna collapse].”

“It could be crazy,” Ki Young Ju said when asked what the effect of China selling the coins could be. “Imagine they start dumping 194,000 bitcoin to kill crypto markets.”

However, some think China could have already downloaded the coins, which points to that reports from local journalists and crypto investors suggesting that China may have worked with an exchange like Huobi to sell the crypto.

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