Bitcoin price took a hit in late 2024, dropping 10% in weeks, leaving traders scrambling for answers. Amidst the volatility, crypto news revealed that local Chinese governments are quietly liquidating seized Bitcoin to overcome financial hurdles. River, a Bitcoin investment firm, points to China’s vast holdings—over $1.4 billion worth of Bitcoin – as evidence. Despite a 2021 nationwide ban on crypto trading, these sales continue. This covert practice has left experts questioning transparency, legality, market stability, and the enforcement of national policies. 2023 data from blockchain security firm SAFEIS revealed $59 billion in cryptocurrency crime-related activity, which likely fueled this wave of sales. Local governments are using private firms like Jiafenxiang to offload their seized assets through offshore transactions. A recent report by Reuters has exposed the extent of these sales – they have already surpassed 3 billion yuan ($414 million) since 2018, impacting market sentiment and prompting a response from key players like Cas Abbe, a Web3 growth manager. Abbe notes that local governments are using seized Bitcoin to bolster their budgets by selling assets in an attempt to overcome economic difficulties. This practice has raised concerns about the transparency and legality of the process, as it contradicts China’s official ban on trading cryptocurrencies.