Where do all the cryptocurrencies seized in China end up?
In China, cryptocurrencies seized and confiscated by the government usually go to the national treasury. According to relevant Chinese laws and regulations, cryptocurrencies are considered illegal proceeds from criminal activities such as illegal fundraising and fraud, so once confiscated, the handling of these cryptocurrencies will follow similar procedures as other illegal proceeds.
Generally speaking, the handling steps may include the following aspects:
1. Judicial auction: Some cryptocurrencies may be sold through judicial auctions, and the proceeds go to the national treasury. This method is also similar in foreign countries (such as the United States).
2. Destruction: Some cryptocurrencies may be destroyed to prevent them from re-entering the market.
3. For investigation: In some cases, the confiscated cryptocurrencies may be used for subsequent investigations or technical research to better combat related criminal activities.
The specific handling method may vary depending on the nature and number of cases. Since China has strict restrictions on the trading and use of cryptocurrencies, such assets will be handled more cautiously and conservatively.
