Cryptocurrencies

A cryptocurrency wallet named “German Government (BKA)” has been launched by an analytics company.

A cryptocurrency wallet named “German Government (BKA)” by cryptocurrency analytics firm Arkham began transferring Bitcoin on June 19, sparking curiosity among the community. The wallet moves led many to believe that the German government was selling off its Bitcoin holdings.

German government confiscated BTC from pirate film platform

According to Arkham data, the cryptocurrency wallet held approximately 50,000 bitcoins (BTC) since February 2024, before transferring approximately 6,500 BTC on June 19. The money was allegedly seized from the operator of the pirate film site Movie2k.

Source: Arkham

The German government-linked wallet made four transactions on June 19, with an outflow of 6,500 BTC worth over $425 million to the wallet address “bc1q0unygz3ddt8x0v33s6ztxkrnw0s0tl7zk4yxwd” and an additional 2,500 BTC worth of 154 million dollars to his own address.

Bitcoin movement from the German government wallet. Source: Arkham

The wallet address received 6,500 BTC and then transferred 2,500 BTC to another wallet address, “bc1qq0l4jgg9rcm3puhhfwaz4c9t8hdee8hfz6738z”. This wallet address then transferred the newly received funds in four transactions worth 500 bitcoins. Two of these transactions were made to cryptocurrency exchanges Kraken and Bitstamp, while the other two were transferred to unclassified private addresses.

Transfer BTC to exchanges. Source: Arkham

The wallet marked by the German government currently contains 43,359 bitcoins worth $2.83 billion. Although not all of the transferred funds have been liquidated, several cryptocurrency figures have commented on the potential impact of selling such a large amount of Bitcoin.

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A cryptocurrency trader has claimed that the recent rise in short positions and decline in the Bitcoin market could be due to the German government’s selling spree.

Governments around the world are selling seized bitcoins

Governments around the world often confiscate Bitcoin and other digital assets from criminals and occasionally hold auctions to sell their seized cryptocurrency holdings.

The US government has already sold a significant portion of the Bitcoin seized from the notorious dark web marketplace, Silk Road. Tim Draper, an American businessman and Bitcoin advocate, purchased Silk Road Bitcoin in 2014 at an auction organized by the US Marshals.

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