Wednesday, November 30, 2022
HomeCrypto NewsMarketThe Chinese Government Holds More Bitcoin Than MicroStrategy

The Chinese Government Holds More Bitcoin Than MicroStrategy

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The Chinese government is one of the largest Bitcoin whales in the world.

CryptoQuant chief Ki Young Ju in a thread on Wednesday, disclosed a little-known fact that the Chinese government is not only one of the largest Bitcoin whales in the world but also holds more Bitcoin than Michael Saylor’s MicroStrategy.

Elaborating, Ki Young Ju explained that the Chinese authorities handed over 194k BTC and 833 ETH seized from the PlusToken scam in 2019 to the National Treasury.

In comparison, MicroStrategy holds 130k BTC.

It is worth noting that the PlusToken scam attracted several investors in Asia and other parts of the world. It was able to steal about 200k BTC from unsuspecting investors from 2018 to 2019. Notably, the pyramid scheme scam attracted investors with up to 30% returns for holding their Bitcoin and Ethereum with its wallet service. 

As investigations revealed, in typical pyramid scheme fashion, the scheme paid old investors from the deposits of new investors. Consequently, it was not long before users started experiencing withdrawal issues from the unsustainable model.

Notably, in addition to this, data reveals that the team behind PlusToken also contributed to several significant Bitcoin price drops within the period by swapping their loot using over-the-counter (OTC) trading services. The CryptoQuant chief, in his thread on Wednesday, reveals that some members still appear to be active, as someone used the same mixer used by the group to send 50 BTC to exchanges a week ago.

While it may not have been its intent, the thread has sparked concerns among investors. For example, one user questioned what could happen to the price of Bitcoin should the Chinese government decide to sell. Even as another pointed out, it is very likely that the cache disclosed by Ki Young Ju is not the only one the government has confiscated. Moreover, yet another user lamented the continued presence of the Chinese government in spreading fear, uncertainty, and doubt (FUD) in the crypto markets.

It is worth noting that last year the Chinese government intensified its efforts to crack down on crypto trading and mining in the country. Notably, it went as far as even outlawing crypto-related platforms and news outlets. The move caused warranted panic in the crypto markets as, at the time, China played host to most crypto miners.

Notably, the government has championed a Central Bank Digital Currency (CBDC) over crypto to maintain its oversight and monetary control.

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Mark Brennan
Mark Brennan
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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