In Chinese, the government is using private companies to sell confiscated cryptocurrencies in court cases without public disclosure.

The increasing amount of confiscated cryptocurrencies in China is prompting the government to find ways to convert these assets into yuan.

The problem: Cryptocurrency trading is prohibited in China, where cryptocurrencies are not considered legal tender.

So, local governments are turning to private companies and offshore trading platforms to sell confiscated digital assets.

"Such measures are temporary solutions, but legally they are not fully consistent with the current ban on cryptocurrency trading in China," said Chen Shi, a professor at the Central China University of Economics and Law.

It is estimated that Chinese local governments held approximately 15,000 Bitcoins, worth an estimated $1.4 billion, as of the end of last year.