Why Did The German Government Sell Off 50,000 Bitcoin In 2 Weeks
July 18 2024 - 9:30AM
NEWSBTC
The German government has sold all of its Bitcoin (BTC) in just two
weeks. The reason for the substantial Bitcoin dump was unveiled in
a recent statement by the Saxony Central Office for the Protection
and Realization of Virtual Currencies. Why Germany Sold All Its
Bitcoin In a blog post published on July 16, the Saxon Central
Office and Frankfurt Bankhaus Scheich Wertpapierspezialist AG, a
German securities trading bank, announced that they had
successfully completed the sale of approximately 49,858 BTC.
Starting on June 19, 2024, the German government began to sell off
its massive Bitcoin reserves, officially concluding sales on July
12, 2024. Related Reading: XRP Whales Are On The Move Again –
Here’s What They’re Doing This Time The government disclosed that
the sale proceeds had amounted to €2.63 billion, with the funds
remaining provisionally secured for the criminal proceedings
related to the “movie2k” complex. The backstory behind the German
government’s substantial Bitcoin holdings involves a digital asset
seizure from movie2k, a notorious and now-defunct movie piracy
website. Earlier in January 2024, the government seized 50,000 BTC,
worth over €2.1 billion at the time, from the operator of the
movie2k website. Unlike some global jurisdictions that might hold
onto the seized digital assets, German law mandates their
liquidation. This mandate is part of an “emergency sale” under
Article 111p of the Code Of Criminal Procedure. As a result, the
Dresden Public Prosecutor Office had no alternative but to sell off
their Bitcoin stash which was transferred by the accused at short
notice. Germany’s Bitcoin sale was also driven by its legal
obligation to liquidate valuable assets before the conclusion of
ongoing criminal proceedings, particularly when there is a threat
or risk of significant loss. Considering Bitcoin’s
notorious volatility and its penchant for rapid price fluctuations,
the threat of loss was always present and, therefore, necessitated
the sale. Moreover, any speculation of prices or waiting on
the rising value of the seized assets by the prosecuting authority
is strictly prohibited in an emergency sale, which is expected to
be carried out as quickly as possible. This is because the current
value of Bitcoin and other price influential circumstances are
irrelevant in deciding where and when to execute an emergency
sale. Germany Conducts Market-Friendly BTC Sale During its
blog post, the Saxony Central Office for the Protection and
Realization of Virtual Currencies disclosed that the government had
conducted a “market-friendly and appropriate sale of Bitcoins.” The
government had initiated multiple BTC dumps in small tranches over
a period of approximately three and half weeks, taking into
consideration how substantial BTC sell-offs can significantly
impact the market. Related Reading: Crypto Analyst Predicts
450% Move For Shiba Inu To Reach New All-Time High According to the
government, approximately 49,858 BTC was transferred on January 16,
2024, representing a total value of €1.96 billion at the time, with
an average purchase rate of about €39,400. Looking ahead, the price
of Bitcoin was not severely impacted by the German government’s
substantial lofty sell-off. A crypto analyst, Simon Dedic
revealed in an X post that the price of BTC has surged by almost
23% since Germany’s Bitcoin dump and is now trading at a higher
level than on June 19 when the government began transferring
funds. Featured image created with Dall.E, chart from
Tradingview.com
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