Mass-Scale Onchain Transfers Taking Place from Cold BTC & ETH Wallets in China

China Prepares Laws For Helping Its Digital Yuan To Eliminate Competitors

Offensive and belittling statements made by Peoples Bank of China with regard to foreign crypto trading and investment platforms and virtual assets have spurred a mass-scale onchain transfer of crypto funds, in particular, from the cold wallets of Bitcoin and Ethereum. On Sunday the 26th September 2021 alone Bitcoins worth more than US$ 3 Billion were transferred into unidentified digital wallets which are located outside China.

It has been noticed recently that Chinese crypto owners, whether small or major, individuals or corporate, are taking out their crypto funds. The word is that Chinese crypto users have been seen moving their crypto holdings from Chinese platforms. In fact, they have been transferring these crypto funds into the foreign crypto exchanges located in the adjacent states of China. Such transfers have been duly noted by a crypto-journalist, Wolfie Zhao, working for online media namely “”. He wrote a news item on 25th September revealing the revitalized crackdown operation against the Chinese crypto industry and community.

Zhao notices that the crackdown operation has been again exercised in full force by the state machinery. The operation has terrified retail crypto users and once again OTC/onchain platforms have been engaged. Thereafter, there were seen huge number of crypto transfers taking place from local Chinese platforms into foreign crypto platforms. Most of the crypto funds moving out of China apparently belonged to a famous Chinese crypto firm, Huobi. For example, Huobi made a transfer of US$ 2.4 Billion worth of Ether funds into an unidentified crypto wallet. The said transaction took place on Sunday, 26th September 2021, and involved Ether amounting to US$ 800,000.

Further details of transactions suggested that each Ether transfer of Huobi consisted of not less or more than 100 units of Ethereum. Later that day, Huobi sent thousand Ehtereum coins further into another undisclosed digital wallet.

Similar was the situation with the Bitcoin transfers from China into foreign platforms. Approximately 73,000 Bitcoins amounting to more than US$ 3 Billion were transferred on Sunday as well. This huge transfer took place from two different wallets which were lying cold for a very long time. However, one out of the two digital wallets belonged to Huobi. After the transfer, there were series of Bitcoin transfers that took place afterward. According to a separate news item, the total number of Bitcoins moved on that day were about 104,999.

According to the researcher who noticed massive transfer of Bitcoins, said that the crypto community does not need to panic. The transfer is not suspicious and does not belong to any crypto fraud or stealing attempt. Instead, the said transfer belongs to none other than Chinese crypto firm Huobi, said the researcher. The researcher also claimed that the recent transfers are stemming from Peoples Bank of China’s offensive and belittling statements against crypto. However, such statements were issued in the past as well yet the Huobi’s panic seems odd a bit.