The growing Bitcoin (BTC) transfers may soon get out of hand, especially with a huge Chinese seizure that has come to light.
Chinese Government Seize 190K BTC
According to local news outlet Sina Finance, the Chinese government confiscated 190,000 Bitcoin units, 830,000 Ethereum, and 27.24 million EOS coins last year.
These huge crypto holdings were from the perpetrators of the PlusToken pyramid scheme. This was a Ponzi scheme led by three individuals Chen Bo, Ding Zanqing, and Peng Yixuan. They cheated many investors out of their hard-earned digital assets.
Precisely, the bad actors behind the scheme raised 310,000 Bitcoin, 9.17 million Ethereum, more than 51 million EOS, from both online and offline investors who they promised interests.
It is worth nothing that the Chinese authorities seized both the digital currency raised by the platform, and the profits of the defendants. The seized assets are meant to be turned over to the state treasury. The question now is what happens to this huge digital asset holdings.
In the last few weeks, the broader crypto market has seen severe crypto liquidations with various entities offloading their Bitcoin holdings. The German government has been at the center of these Bitcoin transfers that led to the selling pressure. The holding which is a total of 50,000 Bitcoin was originally seized from the operators of Movie2k.to, a notorious movie piracy site. The German government began offloading these crypto assets in mid-June.
Will the Chinese Government Offload its Seized Bitcoin?
One of the recent transfers was on Monday when the German government offloaded almost 5,000 BTC on crypto market maker Cumberland DRW and Flow Traders, crypto exchanges Coinbase, Bitstamp, and Kraken and other wallet addresses. As of July 8, the German government still had 32,488 BTC worth an estimated $1.855 billion. However, this should have increased considering that the German government just reaccumulated 3,673 BTC in a plot twist.
With the revelation that the Chinese government has an even larger Bitcoin holding from seizure than Germany had, the crypto industry is now concerned. There is a possibility that the Chinese government may trail the path of Germany and even the US government, releasing massive volumes of BTC into the market.
Should this happen, the end of Bitcoin selling pressure may not be over as some analysts has earlier explained. In the meantime, the loot remains intact.
Read More: Pro-XRP Deaton Unveils Initial Senate Bills, Agrees With Musk On “Regulatory Capture”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: