Facing mounting pressure from economic stagnation, China is aggressively managing its growing stash of seized cryptocurrencies. With over 3,300 individuals facing prosecution for cryptocurrency-related offenses and a staggering estimated $59 billion in illegal transactions reported in 2023, the nation’s approach to this asset class is attracting international attention. China continues to grapple with regulatory uncertainty surrounding cryptocurrencies, leading some local governments to sell recovered assets in foreign markets. This practice has yielded over $400 million in cryptocurrency sales since 2018, while local authorities reportedly hold an estimated 15,000 Bitcoins worth nearly $1.4 billion. While these actions are generating considerable revenue for the state, China remains hesitant to establish a national strategy for managing these assets effectively.