April 18, 2025
By Anjali Kochhar
China is reportedly selling off large quantities of cryptocurrency it confiscated during criminal investigations, according to a Reuters report. These sales are helping the Chinese government bolster its financial reserves amid growing economic challenges.
The revelation came through multiple sources familiar with Chinese law enforcement activities. As per the report, the government doesn’t hold onto the crypto it seizes. Instead, once the legal process is completed, the assets are auctioned off or sold directly, and the proceeds are added to the national treasury.
This practice gained attention after the sentencing in the 2020 PlusToken scam one of the largest crypto frauds to date where over $4 billion worth of crypto assets were, seized, including Bitcoin, Ethereum, and others. At the time, Chinese courts publicly confirmed the seizure but did not provide clarity on what happened to the funds afterward. Reuters now suggests that the assets were sold and the proceeds transferred to state coffers.
Unlike the U.S., where seized crypto is often auctioned off through third-party platforms in a transparent manner, China’s handling of these assets appears less open. There is no official reporting or tracking system for how much is sold, when, or at what price. Despite this, analysts believe these sales could be significant in scale.
The news comes at a time when China is facing economic pressure, with local governments struggling with debt and the real estate market showing prolonged weakness. Selling seized digital assets presents a quick way for the government to raise funds without new taxation or debt issuance.
Experts also noted that such sell-offs, if done in large volumes, could temporarily impact global crypto prices. However, because China does not disclose the timing or scale of its sales, markets remain largely unaware of their immediate effects.
While China has banned crypto trading and mining, its use of crypto assets shows a contrasting approach. This underscores the complex relationship between Beijing and the world of digital assets.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
