Justin Sun has offered to purchase the German government's $2.3 billion Bitcoin holdings off-market to prevent potential negative impacts on the cryptocurrency's price.
Sun's Proposal
Tron founder Justin Sun is again playing savior with his offer to purchase the German government's Bitcoin holdings, valued at over $2.3 billion. Sun made this announcement via a tweet on July 4, expressing his interest in buying Bitcoin (BTC) off-market to avoid significantly impacting the cryptocurrency's price.
In his tweet to his 3.5 million followers, Sun stated,
"I am ready to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market."
This is not the first time Sun has intervened in a potential crisis; he previously offered to stabilize the market during the FTX crisis.
Background of German Government's BTC Holdings
The German government-labeled wallet first drew attention on June 19 when it transferred 6,500 BTC, valued at over $425 million. This movement raised concerns about a potential market sell-off, which could negatively affect Bitcoin's price. The wallet, tagged by Arkham Intelligence as “German Government (BKA),” has been actively transferring Bitcoin since mid-June.
The Bitcoin in question was seized by the German Federal Criminal Police Office (BKA) in January. The BKA seized 50,000 BTC from the operators of the pirate movie website Movie2k.
Responsibility for BTC Sale
While the exact authority responsible for the sale of the Bitcoin remains unclear, BKA spokeswoman Kristina Sawazki clarified that the criminal unit does not hold the seized Bitcoin. According to Sawazki,
“In principle, the sale or conversion of seized Bitcoins into Euros is the responsibility of the relevant public prosecutor’s office or court. The proceeds of seized assets are paid to the Land Revenue Office of the place where the competent court has its seat, in accordance with Article 60 of the Code of Criminal Procedure. The BKA only preserves crypto-assets seized or confiscated in the course of investigations for the public prosecutor’s offices.”
Recent Transactions and Implications
On July 4, the wallet transferred $172 million worth of Bitcoin to various crypto wallets, including three popular centralized cryptocurrency exchanges (CEXs) — Coinbase, Kraken, and Bitstamp. This transfer suggests the German government might be preparing to sell its Bitcoin. Prior to this, on July 2, the wallet moved $52 million worth of BTC, including 100 BTC to Coinbase, 150 BTC to Bitstamp, and 32.74 BTC to Kraken.
The continuous selling of Bitcoin by the German government-labeled wallet has been a hot topic among traders. Sun's offer to buy the Bitcoin off-market aims to mitigate any negative impact on the market. His intervention could help stabilize Bitcoin's price, preventing potential volatility that could arise from such large-scale transactions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.