Chinese Police Seize 1% of Bitcoin’s Total Supply

[btctaipei]

BTC are not moving slowly here in china.
Quite the contrary. 

Those of us in the know Plenty of cross strait trades; both private individual and institutions closing shops repatriate can attest to this.

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[Akiko]

There was another news like that with 200 000 BTC confiscated from the police a few years ago, but nothing came out of it. We never heard anything anymore about those coins, and that was a massive one too. I guess this is what is going to happen again, and speaking of China, we wont hear about those coins at all.
It won't change the market as they won't sell the coins on the public exchanges. Someone with a lot of money will get himself some a cheap coins and the Communist's Party will be happy.

I guess that news was from 2017. Some of the countries don't want to reveal details about the seized assets and this is not just applicable to cryptocurrency. There is another chance that the information is being withheld, as the investigation is ongoing. Anyway, I would assume that the Bulgarian authorities are still holding most of these coins. Things move very slowly in these ex-Communist nations. It may take another decade for them to decide what to do with these seized assets.

I don't have idea how they secured the seize currency. I mean if it's related to crypto currency they need to have the keys for it the question is who will hold that keys ? Is it possible that they transfer it to a new wallet after getting it to the owner and there are only limited person knows about the keys . What if the one trusted the keys transfer the balance to another wallet and say it it's hacked ?

[uneng]

The court said "the seized digital currencies will be processed pursuant to laws and the proceeds and gains will be forfeited to the national treasury." Still not 100% clear what that means"

Good news, isn't it?

The lack of transparency makes possible only to speculate.
If chinese government put the bitcoins on the market for sell then I think it's good news, but if they are holding that is very bad news. We are talking about one scheme caught by chinese police, but imagine how many of them are still operating in China and how many others heve been already caught as well.

Adding all these sums how much of bitcoin supply has already passed through chinese government hands? Probably a lot. And if they aren't really selling these bitcoins the situation becomes even more serious.

BTC are not moving slowly here in china.
Quite the contrary.  

Those of us in the know Plenty of cross strait trades; both private individual and institutions closing shops repatriate can attest to this.

What happen to you if the communist government catch you dealing with bitcoin?

[NotATether]

All this money was seized from the PlusToken ponzi scheme.

^ At least make this part clear so we know where all that cryptocurrency came from.

My gut feeling is that China will send it all to its own treasuries to use them as government money. It's a lot of money, so why would you think they'd throw away the opportunity to advance their own Digital Yuan project and use this as funding.

[Shasha80]

Actually I am happy to know that the ponzi scheme crime in China has been successfully stopped, and the Chinese police were able
to confiscate about $ 4 billion in crypto assets. That's a very large number, on the other hand this could have a negative impact if the
Chinese police will sell all the confiscated crypto assets. Hopefully this will not happen, because it can create a market dump.

But I was quite surprised to learn that the ponzi scheme that occurred in China could be as much as $ 4 billion. This proves that there are
still many people who invest without doing research first, I hope the ponzi scheme that is happening in China will be a lesson for all of us,
to be more careful in choosing projects for investment.

[bryant.coleman]

I don't have idea how they secured the seize currency. I mean if it's related to crypto currency they need to have the keys for it the question is who will hold that keys ? Is it possible that they transfer it to a new wallet after getting it to the owner and there are only limited person knows about the keys . What if the one trusted the keys transfer the balance to another wallet and say it it's hacked ?

I guess they will deal with the seized assets the same way as the FBI dealt with the Silk Road coins. FBI created a new wallet, and moved the coins to this wallet. Only the FBI staff has the private keys to access these coins. The coins were held in this wallet for sometime, before the FBI got rid of them through a series of online auctions. I am not sure whether they have any coins remaining from that seizure.

[mariah.sadio]

People should stop to give too much attention to all this China FUD. To stupid reason for dump as for me

[BlackBaron]

Actually I am happy to know that the ponzi scheme crime in China has been successfully stopped, and the Chinese police were able
to confiscate about $ 4 billion in crypto assets. That's a very large number, on the other hand this could have a negative impact if the
Chinese police will sell all the confiscated crypto assets. Hopefully this will not happen, because it can create a market dump.

But I was quite surprised to learn that the ponzi scheme that occurred in China could be as much as $ 4 billion. This proves that there are
still many people who invest without doing research first, I hope the ponzi scheme that is happening in China will be a lesson for all of us,
to be more careful in choosing projects for investment.

china they are the main operator and most of victim are from 3rd world country including my country sadly ponzi very often you will found in 3rd world country since most of them are uneducated and want instant money

[Josefjix]

People should stop to give too much attention to all this China FUD. To stupid reason for dump as for me

No matter how much we'd want to neglect such conflicts, they are required in deciding whether Crypto is gaining widespread or not. They are much needed as well as adoption of Bitcoin by PayPal and other well known institutions IMO the FUDs can't be neglected at all cost though the effect of negativity by it has to be mitigated.

[Vishnu.Reang]

china they are the main operator and most of victim are from 3rd world country including my country sadly ponzi very often you will found in 3rd world country since most of them are uneducated and want instant money

If you are talking about the PlusToken scam, then I need to inform you that most of the victims were from mainland China. But this scam stretched across the country borders, with hundreds of thousands scammed in countries such as Vietnam and Thailand. Also we don't know the actual amount that was scammed. A large fraction of the victims have refused to cooperate with the authorities and divulge their losses. 

[SaShiRaJaVu]

The court said "the seized digital currencies will be processed pursuant to laws and the proceeds and gains will be forfeited to the national treasury." Still not 100% clear what that means"

It will be a great news if the authorities return the money to the investors that got scammed and then sell the coins in an auction. It would be great to see many Ponzi and scammers getting caught and all of their loots will be confiscated and return everything to the real investors and lock them up in jail for a long time and it should be a warning for all the scammers.

[davis196]

The court said "the seized digital currencies will be processed pursuant to laws and the proceeds and gains will be forfeited to the national treasury." Still not 100% clear what that means"

Good news, isn't it?

How on earth it can be a good news?? Having 4 billion USD worth of crypto assets in the hand of an authoritarian government!! It's good that a ponzi scheme is busted but Chinese government is not at all favorable to cryptocurrencies.

I don't know what Chinese law says, but in general for any such kind of financial frauds, the government liquidate the seized assets and return the money to its investors. That liquidation happens in fiat currency so I assume Chinese government will sell off the seized crypto assets. That's not a good news in this bleeding market!

It would be way better,if the Chinese government directly refunds the coins back to the victims of that ponzi scheme.
Selling all seized coins at an auction won't be fair to all the people,who were scammed and lost their hard earned money.
Unfortunately,this will never happen and the authorities will most likely sell the coins and keep the money inside their treasure.
1% of the entire Bitcoin supply isn't that much,but I expect a small BTC price correction,when those coins are sold.

[aesma]

If the Chinese are smart they will keep the BTC (at least), add it to their central bank's reserves. Might come in handy in a few years when it's worth 40 or 400 billions !

[Innerpumper]

Whoa, how did they do it? Will this affect the price of bitcoin?

Not likely.  The Chinese central bank is aware of the consequence of dealing with fall out of USD collapse, and is quietly boosting its precious metal and crypto currency holdings for the day of global reset.

That is very likely because China may want to take control of everything in the industry in the world. We know one thing is that bitcoin has an unstoppable nature and also can not be controlled . This is probably what China hates. I don't think they will ever be able to continue to dominate all industries. I believe bitcoin and its technology are the best thing and a fair system for all.

[Lizzylove1]

They should be fair by auctioning the seized bitcoin. And not forfeit the money to national treausry. It's a scam proceed, I doubt original investors can be traced.

[error08]

People should stop to give too much attention to all this China FUD. To stupid reason for dump as for me

It's not a FUD, it's a FACT.
They seized too much and could dump it to the market anytime they want, as no statement that those coins will be aucted but forfeited to the national treasury.
Cryptocurrency is banned in China, in this case, it is possible not to auction off the confiscated proceeds.
We can speculate that the last correction caused by China as well, or they will wait until bitcoin reaches a new ATH to sell all of it.

[stompix]

People should stop to give too much attention to all this China FUD. To stupid reason for dump as for me

It's not a FUD, it's a FACT.

Nope, anything that shows even a little bit of something negative towards bitcoin is FUD.
I'm really embarrassed looking at this topic and seeing quite old members describing this as FUD, saying that is manipulation, that is not real, that...
Seriously, people have started to go nuts, this is becoming like a cult, you're not allowed to say bitcoin was used for a Ponzi scheme> 10 lashes, you're not allowed to say bitcoin is used for criminal activities > 100 lashes.

And you know what's even funnier?
The whole "don't believe in this FUD" about a Ponzi scheme comment comes from a user that has a negative trust rating for advertising a Ponzi scheme! Isn't this gold?

More than that, I stopped reading the article on the blockcrypto when I saw "Ponzi scheme crackdown".  

Have you gone also full cultist mode and you're denying reality?  

Correction can be deeper but it is a healthy correction and such news don't break my belief in bitcoin.

Yup, your belief in Virgin Mary, so with your strong belief you're going to deny facts because you believe in a heavenly purpose?
Wake up, bitcoin is used for a Ponzi scheme, fiat is used for Ponzi schemes, even cattle were used for Ponzi scheme, cryptos are used to buy drugs, fiat is used to buy drugs, food stamps are being used to buy drugs! Reality check!!! it's money, it's valuable, it will be used for bad and good things, no matter how much you pray and you stick your head in the sand it will never change facts!!!!

[error08]

People should stop to give too much attention to all this China FUD. To stupid reason for dump as for me

It's not a FUD, it's a FACT.

Nope, anything that shows even a little bit of something negative towards bitcoin is FUD.

is anything negative towards bitcoin categorized as FUD? Pardon me, all this time I thought FUD is false or misleading information that is spread deliberately to deceive. FUD is generally a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear. source. But yeah, negative and dubious is a manifestation of FUD.
However, this news mentions the fact that 194,775 BTC and all other coins worth over 4 billion were seized.

[Mike Mayor]

At least the crypto is out of the hands of criminals but they should give it back instead they say they will give it to the "treasury" which means their pockets. All that has happened is the stolen crypto has just shifted into the hands of an even bigger threat and theif.

I am not sure I believe the amount that has been seized. Police love to talk crap. When they do a drug bust they say they found 100 million worth of whatever but in reality, it's only half a million.
They won't release the addresses that now contain these seized crypto because this is communism & they much prefer to use it themselves. 

Put it this way. I wouldn't trust China to pour milk over my cereal in the morning. I would rather put my head in a croc's mouth.