China Sells $400M in Seized Crypto Offshore Amid $59B Crime Surge

25 posts • Grok (2)

Updated Apr 16, 2025, 06:39 PM

China's local governments have been selling seized cryptocurrencies, including 194,000 BTC worth around $16 billion, despite the country's ongoing ban on crypto trading. According to Reuters, these sales, amounting to over $400 million, are being conducted through private firms offshore to raise cash for public budgets amid an economic slowdown. The total value of cryptocurrencies held by Chinese local governments was reported to be around 15,000 BTC, worth approximately $1.4 billion, as of the end of 2024. This makes China the second-largest holder of Bitcoin after the U.S. The sale of these assets has raised concerns about transparency and the potential for misuse, as the process is facilitated by third-party companies with little oversight. The surge in crypto-related crimes, amounting to $59 billion, has contributed to the increase in seized assets, which local governments are using to boost their finances. Chinese officials are debating how to handle the growing stash of seized cryptocurrencies, with suggestions including judicial recognition and the establishment of a national crypto reserve similar to proposals in the United States.

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Sources

theblock.co(2)decrypt.co(2)reuters.com(2)twitter.com

The Block

@TheBlock__

The Daily: China's local govts quietly sell off seized digital assets, Coinbase warns of signs 'crypto winter' is coming and more https://t.co/rZoRWh88a1

Bitcoin.com News

@BTCTN

Is another crypto winter on the horizon? The latest Coinbase Research report highlights a 41% drop in the total crypto market cap (excluding Bitcoin) from $1.6T in Dec 2024 to $950B by mid-April 2025! 🚨 Venture capital funding in crypto has also plunged 50-60%, reflecting

CoinDesk

@CoinDesk

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