Germany sells off part of 50000 Bitcoin confiscated from Pirate Website Movie2k
The German government has recently completed the sale of 900 Bitcoin, totaling over $54 million in value. The sales were made to Coinbase, Kraken, and an unknown wallet labeled “139Po”. Despite the sales, the government still holds over 46,000 Bitcoin, valued at approximately $2.8 billion.
These significant sales have the potential to impact the price of Bitcoin, as they were originally seized from the operators of the piracy website Movie2k. The German government has initiated the sale of a substantial amount of Bitcoin confiscated from criminals, which could have an effect on the cryptocurrency market. Over the last week, wallets associated with German authorities have transferred hundreds of Bitcoin to major exchanges, likely with the intention of converting them into regular currency.
On June 25, a wallet belonging to the German Federal Criminal Police Office (BKA) sent 200 Bitcoin each to Coinbase and Kraken, with a total value of about $24 million at the time. In addition, the same wallet transferred 500 Bitcoin, worth over $30 million, to an unknown address labeled “139Po”. This recent activity is not the first instance of the German government moving significant amounts of Bitcoin. On June 19, it transferred 1,500 Bitcoin (valued at approximately $97 million) to Kraken, Bitstamp, and Coinbase. The following day, an additional 200 Bitcoin were sent to Coinbase. In total, German authorities have moved about 2,600 Bitcoin, amounting to around $158 million, during the past week.
The Bitcoin being sold came from a substantial seizure by German law enforcement. In January, the BKA received nearly 50,000 Bitcoin from the operators of Movie2k, a website that illegally distributed pirated films. At the time, this Bitcoin was worth over $2 billion, making it the most significant cryptocurrency seizure in German history. Despite these recent sales, the German government still maintains a significant amount of Bitcoin. According to blockchain analysis firm Arkham Intelligence, the BKA-associated wallet contains approximately 46,359 Bitcoin, currently valued at approximately $2.8 billion.
The sale of such large amounts of Bitcoin by a government entity has caused concern in the cryptocurrency community. Some are worried that if too much Bitcoin is sold too quickly, it could lead to a decrease in the price of the digital currency. Bitcoin’s value has already decreased by about 6% since the German government began moving funds to exchanges last week.
It is important to note that the amounts being sold are relatively small compared to the overall Bitcoin market. Each day, tens of billions of dollars worth of Bitcoin are traded worldwide. For example, the $24 million sold on June 25 is only a tiny fraction of the $40 billion in Bitcoin traded that day.
The situation with the German government’s Bitcoin comes at an interesting time for the cryptocurrency market. In July, the defunct Bitcoin exchange Mt. Gox is set to begin repaying its former users. Mt. Gox owes about $9.4 billion worth of Bitcoin to around 127,000 people who lost money when the exchange collapsed in 2014.
Germany is not the only government holding large amounts of Bitcoin. The United States government is believed to have the largest stash, with over 213,000 Bitcoin. China and the United Kingdom also hold substantial amounts, with about 190,000 and 61,000 Bitcoin respectively.
