Chinese police confiscate almost 195,000 BTC – danger for Bitcoin?
The Chinese police confiscated crypto currencies from the PlusToken scam worth 4.2 billion US dollars. Is there a threat of a sale now?
In a new ruling, the police are reporting in detail on the incident for the first time. According to the ruling, one percent of the circulating Bitcoin supply is currently in the hands of the Chinese government. In total, the Chinese police confiscated 194,775 Bitcoin (BTC), 833,083 Ethereum (ETH), 1.4 million Litecoin (LTC), 27.6 million Eos (EOS), 74,167 Dash (DASH), 487 million Ripple (XRP), 6 billion Dogecoin (DOGE), 79,581 BitcoinCash (BCH) and 213,724 Tether (USDT) from seven defendants during a raid.
These assets are valued at the equivalent of $4.2 billion at the time of going to press. As part by Bitcoin Rush of the ruling, the court announced that the crypto-currencies will flow into the treasury in accordance with Chinese legislation.
The Yancheng Intermediate People’s Court did not specify how much of the confiscated crypto assets should be held or sold.
PlusToken fraudster buys luxury cars and real estate
Local media report that the PlusToken-Scam crypto user has cost more than 7.6 billion US dollars in Bitcoin and other crypto currencies. PlusToken advertised with a crypto-arbitrage trading platform that promised daily payouts to users. Users had to deposit at least $500 on the platform to receive a return on investment.
Details of the original verdict have not been made public for the time being, as several convicted persons have appealed. However, the Yancheng Intermediate People’s Court has now sided with the District Court and dismissed the appeals. Therefore, new details of the criminal case are now available.
Between 6 April 2018 and 27 June 2019, the Scam lured over 2.6 million members into the case. In addition, funds equivalent to 11 billion US dollars flowed into the platform in this period alone.
A total of 15 people were convicted. The criminals are sentenced to two to eleven years behind bars with fines ranging from 100,000 to one million US dollars.
In addition, one of the convicted has already laundered more than 22 million US dollars in crypto-currencies. The fraudster used the proceeds from the sale of Bitcoin and Co. to buy luxury cars, two dozen properties and insurance policies in Hong Kong.
In recent years, the Chinese police have stepped up the fight against cybercrime. The PlusToken incident has led to the freezing of a large number of bank accounts related to crypto currencies. This makes trading Bitcoin even more difficult for Chinese citizens