Why does China hold over 194K Bitcoin, 487 million XRP, 833K ETH, and 6 billion DOGE?

China holds a large amount of cryptocurrency that far exceeds what most governments acknowledge, and all of it comes from seizures by law enforcement agencies, primarily related to the PlusToken scam, which collapsed in 2019. According to a ruling by the Intermediate People's Court of Yan'an, Jiangsu in 2020, the authorities seized: 194,775 Bitcoin, 833,083 ETH, 487 million XRP, 6 billion DOGE, 79,581 BCH, 1.4 million LTC, 27.6 million EOS, 74,167 DASH, 213,724 USDT.

PlusToken defrauded over $2 billion in cryptocurrency from investors worldwide. This scam began in 2018 when a crime group based in China, posing as South Koreans, launched an app promising monthly returns of 9% to 18%.

The PlusToken app was marketed as a cryptocurrency wallet and investment platform, operating under a multi-level marketing model that required users to invite more people to participate. Over two million people were lured into this profit promise, sending cryptocurrency in hopes of receiving attractive rewards. However, in reality, there were no transactions, no price differentials, or profits; only money from new investors was used to pay earlier participants.