Bitcoin Forum

It appears that the news about the Chinese government holding 1% of bitcoin's supply might be incorrect. It is said that those coins confiscated from Plustoken by Chinese police were already dumped on the market with the assistance of Chaindigg.

Chaindigg is China's version of Chainalysis.



Wu found that, Chaindigg, an company that assisted the Chinese police in selling PlusToken worth billions of dollars crypto in 2019, was called China's Chainanalysis.

Source https://twitter.com/wublockchain/status/1332498136191938561?s=12

sold to themselves for their unlimited fiat, like all bitcoin will be, Chinese inventors of fiat.

it is funny how any news that has China in it gets exaggerated A LOT and eventually turns into FUD. there are a lot of bitcoins being confiscated from a lot of scammers all around the world at all times. US government keeps confiscating and selling these coins every now and then through their auctions but you'll never hear this 1% nonsense or anyone calling it "dump on the market"!
even funnier thing is that nobody cares about such news anymore because the FUD is see through right now.

IMO, they will sell it but what confuses me is the 1% total amount of bitcoin in the market was sold in 2019 by Chaindigg and it is already back in circulation also, the incident with the Chinese authority has occurred in 2019 yet China just released the news recently.  I supposed there must be a conspiracy on this eventuality just IMO and I believe that all government will release such news in public right there and then since it will give a positive image and feedback if they do.

However, the news has come to us a year after the incident transpired which makes me think that they did it intentionally.

Well this is what the government does. They usually take the  scammers money or any asset and then they just sell it or put up a auction for the same. As it turns out it's generally converted into their fiat and then used for either the country or maybe sometimes goes in the pocket of the people who are unfortunately corrupt.
But as we know the price of Bitcoins is climbing as fast as it can and it's really good for the market and therefore I do believe that the government failed to dominate in this section.
Plus I don't think they are going to tell the exact time , date when they sold those coins , this is for sure some information that someone accidentally leaked so consider them sold way way before.

If this information checks out then we will probably be talking about the end of the two year long Plustoken Ponzi FUD.
Also it will mean that if these coins were sold already, then the market is super bullish as it absorbed billions and it keeps rising to new all time highs.

Even if its leaked or not, theres nothing we can do and its not a surprising thing that this one involves again with China which are known to be having that
dwindling kind of perception towards crypto neither they do become positive and later on they do become against with it.

With those coins that had been sell off then its pretty common for such government act.We don't even know if those sold coins to fiat had been totally
applied on that Chaindigg or just a small portion of it and the rest goes to their own wallets.

Confiscated it or not it will sold in the market since the money collected is from one of the biggest scam in crypto space. So instead of holding that crypto that they didn't want to own they decided to sell it. We just don't know how they use the money collected after selling those coins in the market.
But overall it has the same impact in the market , is that tweet created this year or last year?

The tweet is created this year. I can't find the news but in this tweet which gives no references.
I agree with you that it would have the same impact in the market. While i can't understand the point fom op that the news about the Chinese government holding 1% of bitcoin's supply might be incorrect, it's China.

I found this report from a blockchain researcher called Ergo. It appears this might be Chaindigg's operation when the coins were sent to different wallets, they used different mixing methods and also sent to exchanges for selling.

https://research.oxt.me/special-situation-report/1/preview

https://research.oxt.me/special-situation-report/2/preview

https://research.oxt.me/publications

You were just one click away. Not enough data?

The tweet by Wu regarding the 2019 btc sell off could be related to this article https://cointelegraph.com/news/plustoken-scam-selling-could-dump-btc-price-for-the-next-two-months

The 1% holdings by the Chinese government could have come from this report https://www.coindesk.com/chinese-authorities-have-seized-a-massive-4-billion-in-crypto-from-plustoken-scam

It was what you called money laundering in a very low key way. I wonder why the Government released it after a year already considering that Bitcoin transaction is irreversible and I'm sure that the fiat was already spent in something else during that period of time. Chinese Government is just full of dark secrets that its people doesn't even know about, you could tell it in their eyes though (not being racist)

Chinese Government always want the top place in the world society, they never want to feel unimportant that's why they are creating problems and gives solution to them to make them feel superior amongst other countries especially those 3'rd world countries making them indebted to them.

I find it strange that a government would use mixing services, it's not like they need the privacy. Or maybe they did it precisely to avoid the risk of people realizing a massive amount of coins were going to be sold, so to avoid crashing the price ?

@aesma. The confiscated coins went to Chinese exchanges Huobi and Okex. I reckon that it is illegal for the Chinese government to trade on an exchange in their own behalf. This is why the American government auction confiscated coins.

However, if you ask the skeptical me, it might be for plausible deniability and because they have something to hide heheehe. It appears Chaindigg can be hired for moneylaundering purposes.

Yep,the crypto news sites have to "sell" their clickbait and get more clicks and ad revenue.
"Sensationalist" journalism has been invested long time ago...
Unfortunately,the Chinese government can do whatever it wants with the confiscated coins.There aren't any "checks and balances" in China and the Chinese courts don't have the power and authority to cancel a decision made by the government.
The members of the Chinese communist party can steal those coins and nobody can do anything about it. :(

I believe China is left scratching their heads on why the had to go through all the trouble selling those coins. The whole cryptocurrency market is on a path of price discovery for another ATH. They are missing a golden opportunity. The move was not very Chinese of them. 8)

Do you really expect the Chinese authorities to make investment in Bitcoin and the other cryptocurrencies? At that time, they treated the stash as proceeding from crime and similar to other non-cash assets the authorities followed the regular procedure and converted it to fiat currency. This is the same procedure which is followed by the other countries as well, to deal with "proceeds from crime".

No, but their timing is not very Chinese of them. They can always wait for a 6-digit valuation, and then crash the price up to a low of $50,000 per Bitcoin, if they wanted to. 8)

Then it is plus factor to what is the reason of the Bullying market?aside from institutional investors and big company entering Cryptocurrency?
But of course this is still unconfirmed news.

Or maybe they thought that the increase those time is the right timing?well that's another question needs to answer.

But about the selling?it's their right what to do in confiscated Bitcoin because for sure other countries will do the same as added Government fund.

You need to know that the same rules do not apply to everyone, and that there are always those who are above the law or adapt it to their needs. In a political system such as communism, the system dictates to people what they can and cannot do - but in the background, those in power can do whatever they want, and even trade BTC if they want to.

Regardless of their general attitude towards Bitcoin being sent to the public, I wouldn't really bet that they don't invest secretly in something that shows huge potential. I personally believe that China is buying BTC, maybe not in large quantities and certainly not publicly - but they are certainly not so stupid as to completely ignore such an opportunity.

I think we would likely have noticed that.

What would've happened is Binance and friends having OTC buyers immediately ready to buy a million miles away from the market.

They don't hang around. I hope the morons who fell for it get some money back and learn something.

It was a predictable action from the authorities. After all, I remember the US authorities making auctions for BTC they confiscated from some criminals, so China could either do that or dump them on an exchange (and some believe that the latter is better because then the real market price of Bitcoin is decisive and coins fully return to circulating supply naturally). Surely, China could try to be nice and return the money to scam victims, but we knew it was not the likely solution. Anyway, I'm glad if they actually dumped the coins already and thus do not possess any significant amount (and it also means that whatever impact it could have on the price is already over).

It was very noticed, however. The coins were going to Huobi and Okex. Here are different sources.

https://blog.chainalysis.com/reports/plustoken-scam-bitcoin-price
https://thenextweb.com/hardfork/2019/12/17/bitcoin-cryptocurrency-price-dump-ponzi-scheme-plustoken/

https://research.oxt.me/special-situation-report/1/preview
https://research.oxt.me/special-situation-report/2/preview

Also, where would OTC buyers exchange the coins they directly bought for fiat? I reckon some of it might be dumped on the market.

And what seems to be the big deal about this?

The only interesting information here is not that the Chinese government doesn't have what was rumored to be 1% of Bitcoin's supply nor that the amount was already dumped on the market in 2019 but the fact that the second largest shareholder of what is considered China's Chainalysis is a co-founder of Huobi and the next largest shareholder is a shareholder of Binance.

Bitcoin news media wrongfully reporting that the Chinese government presently holds Plustoken's coins.

Chaindigg, China's version of Chainalysis, helping the Chinese government mix and move the coins to exchanges for dumping.

The exchanges assisting Chaindigg for dumping the billions without questions.

The possibility where other blockchain analysis companies and exchanges can also do this service for criminals and corrupt government.

Well, the media always falls short of the very standard they themselves set. That certainly includes cryptocurrency-related media.

The Chinese government is the be-all and end-all of everything that is Chinese. It is supreme in all aspects. So this shouldn't come as a surprise to all. For as long as everything's done with the sanction of the government itself, it is fully legal and proper. There is nothing to contest.

And there's nothing surprising about Chaindigg's actions either. If Chainalysis has been helping Uncle Sam and its agencies, then why it is a big deal if Chaindigg is also doing the same to the red country? It certainly isn't unprecedented.

@Darker45. I like your skeptical mind hehe. It might not be surprising to you, however, many people do not know but should know, I reckon.

Also, from your skeptical mind, what are your thoughts on iFinex and Tether allegedly printing billions of unaudited USDT then loaning them out to exchanges? Surprising or not? Some people have argued that I am wrong and this is only fud.

This is for an altogether separate discussion thread. Anyway, I have always been apprehensive of Tether. For one, I am not so sure if Tether really has billions of USD backing up every single USDT one is to one. I guess they haven't shown a single indubitable proof that they have. And it is indeed enough reason to raise fear, uncertainty, and doubt. Although the issue relating to USDT pumping up Bitcoin's price is more of a plain FUD than an actual event.

@Darker45. However, besides escaping capital controls and money laundering, what would be the other purpose of the unaudited and unbacked Tether except to pump cryptocoins?

It might also be part of the money laundering process to buy cryptocoins.

In any case, we can continue discussion in the big short thread.

https://bitcointalk.org/index.php?topic=5250676.0

Chinese government is not the first that’s doing this kind of thing, so it’s not really a big news for me. A few years back I can remember the US government confiscated a lot of Bitcoin and auctioned it. And that first story aside, I have also seen so many other news of the US government seizing bitcoins, which I know for sure that they are not just going to keep, they will eventually sell it lol. Then I have also seen other country governments that seized bitcoins too, they will also do the same thing. It’s not a new thing, governments around the world are seizing cryptocurrencies and selling them.

@bearexin. Selling the coins fairly in an auction is very different from hiring a blockchain analytics company and help them hide the transactions and launder them to dump on exchanges. Also, one of the cofounders of the blockchain analytics company is also the cofounder of the exchange.

Also, it is good if it is not surprsing to you anymore that there are exchanges and blockchain analytics companies that assist the government and criminals to launder and move money. This implies that they cannot hide.

Incidentally that makes this blockchain analysis company dubious in itself. Instead of showing stuff they hide stuff. You can surely hire them to help you mix coins etc. with it being less noticeable, if you don't mind the Chinese government knowing, that is.