13h00 ▪
5
min in reading ▪ By
Luc Jose A.
The decisions of governments on cryptos often have major impacts on the markets, but the extent of the recent action of China is a major turn. Beijing proceeded to sell 194,000 Bitcoins, seized in 2019 during the dismantling of the PlusToken network, one of the greatest Ponzi patterns in the history of the cryptos. Assessed 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. While Bitcoin continues to establish itself as a global value reserve, this gesture of China highlights the strategic role that governments can play in the evolution of this changing ecosystem.
An unprecedented sale orchestrated by Beijing
In 2019, the Chinese authorities dismantled the PlusToken network, considered one of the greatest patterns of Ponzi in the history of cryptos. This fraudulent system had defrauded billions of dollars to investors around the world, with a massive quantity of cryptos. Among the seized goods were 194,000 bitcoins, estimated at several billion dollars, which were placed under the control of the Chinese state.
According to Ki Young Ju, CEO of cryptocurrency, these bitcoins were gradually sold on platforms like Huobi. “China sold 194k Bitcoins already, in my opinion,” he said in a tweet published on January 23, 2025. However, the Chinese authorities simply declared that the funds had been transferred to the national treasury, without providing more of details on their final use. Such a massive sales operation, of total value estimated at $ 19.7 billion, has exerted significant pressure on the world Bitcoin market. Despite this, the main crypto has managed to maintain relative stability, and only undergoes a decline of 3.7 % in 24 hours, reaching a level slightly less than $ 105,000. This resilience is partly explained by the growing 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 causes 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 surrounded by opacity. “A censored diet that has a censorship resistant currency seems improbable,” said Ki Young Ju. The latter provides information on the paradoxes of Chinese politics vis-à-vis Bitcoin. This contradiction reflects the tensions between the decentralized essence of cryptos and the centralized control exercised by certain states.
In parallel, this operation found a certain balance thanks to the involvement of major institutional investors. Blackrock, for example, has acquired $ 600 million in Bitcoin, which demonstrates a growing interest in the traditional financial sector for cryptos. This trend contributes to stabilizing markets and strengthens the legitimacy of Bitcoin as a reserve of value recognized by institutions. However, some observers warn against potential prices pressures, linked in particular to global monetary decisions, such as possible increases in interest rates. Thus, these factors could accentuate the short -term volatility, even if institutional interest offers more optimistic long -term perspectives.
-This massive liquidation questions the management of cryptos entered by the States. While China has opted for a discreet and rapid strategy, other nations could consider more transparent approaches, in particular via 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 long -term adoption and stability. These decisions could well shape the balance between state control and boom in 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 Cointribuni adventure in 2019. Convinced of the potential of the 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 allow everyone to better understand the blockchain and to seize the opportunities they offer. I strive every day to provide an objective analysis of the news, 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.
