13:00 ▪
5
min reading ▪ by
Luc Jose A.
Government decisions on cryptos often have major impacts on markets, but the scale of China’s recent action represents a major shift. Beijing sold 194,000 bitcoins, seized in 2019 during the dismantling of the PlusToken network, one of the largest Ponzi schemes in the history of cryptos. Valued at nearly $19.7 billion, this massive liquidation triggers questions about its economic implications, and illustrates the growing complexity of relations between states and cryptos. As bitcoin continues to establish itself as a global store of value, this move by China highlights the strategic role that governments can play in the evolution of this rapidly changing ecosystem.
An unprecedented sale orchestrated by Beijing
In 2019, Chinese authorities dismantled the PlusToken network, considered one of the largest Ponzi schemes in crypto history. This fraudulent scheme had defrauded investors across the world of billions of dollars, with a massive amount of cryptos. Among the assets seized were 194,000 bitcoins, valued at several billion dollars, which were placed under Chinese state control.
According to Ki Young Ju, CEO of CryptoQuant, these bitcoins were gradually resold on platforms like Huobi. “China has sold 194K bitcoins already, in my opinion,” he claimed in a tweet posted on January 23, 2025. However, Chinese authorities simply stated that the funds had been transferred to the national treasury, without providing further details. details on their end use. Such a massive sell-off, with an estimated total value of $19.7 billion, put significant pressure on the global bitcoin market. Despite this, the main crypto managed to maintain relative stability, and only suffered a decline of 3.7% in the space of 24 hours, reaching a level slightly below $105,000. This resilience is partly explained by the increasing intervention of institutional actors, who play a stabilizing role in the face of events of this scale.
The implications of such an operation
Despite the relative stability of bitcoin, the massive sale orchestrated by China is causing major concerns about the role of governments in the management of seized cryptos. While some countries favor transparent approaches, such as public auctions, Beijing’s strategy remains shrouded in opacity. “A censored regime that holds a censorship-resistant currency seems unlikely,” Ki Young Ju noted. The latter provides information on the paradoxes of Chinese policy towards bitcoin. This contradiction reflects the tensions between the decentralized essence of cryptos and the centralized control exercised by certain states.
At the same time, this operation found a certain balance thanks to the involvement of large institutional investors. BlackRock, for example, acquired $600 million worth of bitcoin, demonstrating growing interest in cryptos from the traditional financial sector. This trend helps stabilize markets and reinforces the legitimacy of bitcoin as a store of value recognized by institutions. However, some observers warn of potential pressures on prices, linked in particular to global monetary decisions, such as possible increases in interest rates. Thus, these factors could accentuate short-term volatility, even if institutional interest offers a more optimistic long-term outlook.
-This massive liquidation raises questions about the management of cryptos seized by states. While China has opted for a low-key, fast-paced strategy, other nations could consider more transparent approaches, including through public auctions or collaborations with the crypto industry. In a context of increasingly strict regulations, the attitude of governments towards these assets will play a decisive role in their adoption and their long-term stability. These decisions could well shape the balance between state control and the rise of a market based on decentralization.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this revolution in progress.
