The German government-branded wallet has held 50,000 Bitcoin (BTC) since February, and the wallet transferred 6,500 BTC on June 19.
The cryptocurrency wallet, which was classified by cryptocurrency analytics firm Arkham as belonging to the German government (BKA), began transferring Bitcoin on June 19, raising questions from the crypto community, as the wallet's movements led many to believe that the German government was selling its Bitcoin holdings. .
The German government confiscated Bitcoins from a pirated movie platform
According to Arkham data, the cryptocurrency wallet held approximately 50,000 Bitcoins
Since February 2024, before it moved approximately 6,500 BTC on June 19. The coins are believed to have been confiscated from the movie pirate website Movie2k.
The German government-linked wallet conducted four transactions on June 19, recording one flow of 6,500 (BTC), worth over $425 million, to the wallet with address “bc1q0unygz3ddt8x0v33s6ztxkrnw0s0tl7zk4yxwd,” and another flow of 2,500 (BTC), worth $154 million, To another address.
Bitcoin movement from German government wallet. Source: Arkham
The wallet received 6,500 BTC and then transferred 2,500 BTC to another wallet with the address “bc1qq0l4jgg9rcm3puhhfwaz4c9t8hdee8hfz6738z”. The new wallet then transferred the newly received assets through four transactions worth 500 Bitcoin each.
Bitcoin transfers to exchanges. Source: Arkham
Through two of these transactions, the coins were transferred to cryptocurrency exchanges Kraken and Bitstamp, while the other two were transferred to private, unclassified addresses.
Currently, the German government-branded wallet contains 43,359 bitcoins, worth $2.83 billion. While not all of the transferred funds have been liquidated, several figures in the cryptocurrency space have commented on the potential impact of selling such a large stock of Bitcoin.
One cryptocurrency trader claimed that the recent rise in short deals and decline in the Bitcoin market may be due to the German government's sell-off.
Governments around the world are selling confiscated bitcoins
Governments around the world often confiscate Bitcoin and other digital assets from criminals, and hold auctions to sell off their seized cryptocurrency holdings, with the US government having already sold a significant portion of Bitcoin, seized from the notorious dark web market, Silk Road.
Tim Draper, an American businessman and Bitcoin lawyer, bought Silk Road coins in 2014 at an auction organized by the US government.
#ETHETFsApproved #FIT21 #BTCFOMCWatch #BNBHODLer #BinanceTournament
