China Is Fast Losing Money: Their Bitcoin Stash Just Fell By $388 Million

Dalmas Ngetich

2 years ago

2 mins read

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When Bitcoin prices fell from $31,000 to below $29,000, the total value of BTC held by China fell by over $388 million to around $5,4 billion.

China’s Bitcoin Stash Fell By $388 Million

Bitcoin is trading below $28,500 and looks likely to edge even lower, considering the formation in the daily chart. With every tick lower, China and other countries, including Ukraine and Georgia, are losing money.

Bitcoin Price On April 20| Source: BTCUSDT On Binance, TradingView

The loss could even be bigger for the Chinese considering their big stash of BTC, which translates to around 0.924% of the total fixed supply of 21 million, according to Bitcoin Treasuries data.

Records show that China holds 194,000 BTC, 833,000 ETH, and a variety of other unnamed cryptocurrencies. These digital assets were confiscated from the PlusToken scam in 2019 and were worth over $3 billion.

FUN FACT: Government of China🇨🇳 is a crypto whale.

Chinese authorities seized 194k BTC, 833k ETH, and others from the PlusToken scam in 2019. They forfeited these $6 billion-worth assets to the national treasury.

FWIW, MicroStrategy has 130k $BTC. pic.twitter.com/Ilqp7EnenL

— Ki Young Ju (@ki_young_ju) November 2, 2022

According to reports, these assets were tied to the country’s national treasury. Still, some funds associated with the scam are reportedly being regularly sent to mixers and liquidated at spot rates, impacting prices.

However, whether the Chinese government still holds these assets remain unknown. There is no official Bitcoin address to verify the status of these coins.

PlusToken Scam was a global Ponzi scheme targeting Chinese and South Korean investors. It started in April 2018, taking advantage of unsuspecting people who thought they could make quick money from an investment opportunity.

All users had to pay for registration using cryptocurrencies, mainly BTC, before investing. Perpetrators said they were developing cryptocurrency products.

Six Chinese nationals were arrested in Vanuatu and extradited to China to face the law in June 2019. A year later, the Chinese Ministry of Public Security said they arrested other suspects, recovering over $3 billion of crypto assets.

United States Is A Crypto Leader

Cryptocurrency trading and related operations, including mining, are banned in China. Therefore, whether Chinese authorities will “trade” these cryptocurrencies for other assets is unclear for now.

The country outlawed trading in 2017 and mining in 2021, forcing crypto miners, mainly of Bitcoin, to other jurisdictions. Since the ban, the United States has emerged as the biggest host of crypto mining operations. China accounted for over 50% of all crypto mining operations at peak.

According to trackers, the largest public Bitcoin mining companies are in the United States and Canada. Riot Blockchain is the largest publicly listed Bitcoin mining company with a market cap of $1.82 billion.

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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