This source reports that Chinese govt has sold bitcoins from Plustoken scam

[gentlemand]

were already dumped on the market

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.

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[kryptqnick]

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

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).

[bbc.reporter]

were already dumped on the market

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 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.

[Darker45]

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.

[bbc.reporter]

And what seems to be the big deal about this?

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.

[Darker45]

And what seems to be the big deal about this?

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.

[bbc.reporter]

@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.

[Darker45]

@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.

[bbc.reporter]

@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

[bearexin]

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.

[bbc.reporter]

@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.

[aesma]

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.