In 2019, the People’s Republic of China was attracted to the Plus Token, which is basically a Ponzi scheme where the investors believe that if they invest a small amount of assets in return, they will get the profit at a high rate. In June 2021, the investors faced huge issues withdrawing their earnings from the platform.
A Ponzi scheme is a method where victims believe that they are getting profit funds from the business activity, but they are unaware that the remaining investors are the reason for the funds. The most popular Ponzi schemes, like the Plus Token, were well known to the crypto users of mainland China.
Recently, the Chinese government made another shocking announcement about cryptocurrency. It was decided to seize the crypto assets that were involved in the Ponzi scheme. The authorities seized 194k bitcoins in a Ponzi scheme. Besides that, it seized $833k worth of ether, 487 million XRP, 6 billion Dogecoin, and 213,724 USDT. The administration was holding more than $5 billion (USD) worth of crypto assets that were involved in the Ponzi scheme. The seized assets will be held by the national treasury.
FUN FACT: Government of China
Chinese authorities seized 194k BTC, 833k ETH, and others from the PlusToken scam in 2019. They forfeited these $6 billion-worth assets to the national treasury.
FWIW, MicroStrategy has 130k $BTC. pic.twitter.com/Ilqp7EnenL
— Ki Young Ju (@ki_young_ju) November 2, 2022
Currently, the country holding the most bitcoins has a value double that of the MicroStrategy company. At the time of writing, the nation is holding bitcoins at a high rate of $3.9 billion (USD). Daniel Lacalle, a chief economist, tweeted that in the past 30 years, the money supply in China has risen almost ten times more than its gold reserves.
As per the reports, the Bitcoin network’s computing power has grown by nearly 60% since the start of 2022 and reached a record high of 273.21 EH/s on November 1. UNI token has sided with all the digital currencies this week. Now Uniswap is holding the highest market share value in the crypto industry. The two most popular cryptocurrencies, Bitcoin and Ether, are holding $20,000 (USD) and $1,500 (USD), respectively.
Recently, China and Russia have collaborated to develop a new gold-backed currency system that will help replace the United States’ traditional currency.
Source: https://www.thecoinrepublic.com/2022/11/04/mainland-china-seized-the-crypto-assets-involved-in-ponzi-schemes/