We do not know clearly on this issue in China, that the police are actually capturing and mastering this volume of crypto. And more importantly what they will do with them, maybe they will sell them to fund back to the investors.
However, as far as I know, the existence and trading of cryptocurrencies in China is not allowed. So it is also possible that the entire crypto asset will be fundraised for country
I think PlusToken is not the reason why the price of many tokens has decreased recently, because 1% of the total supply of BTC cannot cause the price of BTC to drop 12%/day. It was just a market correction after a big price increase.
Of course the PlusToken scam had a negative impact on the crypto market but that was the time right after the project was exposed, now many people have forgotten that event.