There isn't concrete evidence that China holds $800 billion in cryptocurrency. However, reports indicate that Chinese local governments have been quietly liquidating seized crypto assets, particularly Bitcoin, despite the country's ban on crypto trading. These assets have been monetized through offshore markets, raising concerns about transparency and regulation.

Additionally, China is estimated to hold over $16 billion in Bitcoin reserves, making it one of the largest national holders of Bitcoin, second only to the United States. The country has also seen a surge in crypto-related crime, with thousands of individuals prosecuted for money laundering and illegal activities linked to digital assets.