Bitcoin Sales in Germany: State Forced to Sell Cryptocurrency
Recently, there has been a lot of buzz surrounding the sale of bitcoin in Germany, but it’s important to clarify that it’s not the entire country that is selling off millions of dollars worth of cryptocurrency. Rather, it is a small German state called Saxony that has been involved in these transactions.
The state of Saxony seized nearly 50,000 BTC earlier this year as part of a criminal investigation related to the website Movie2k.to, which was found guilty of money laundering and other illegal activities. The total value of the seized bitcoin is close to $3 billion at current prices.
In order to comply with standard practice for assets confiscated during criminal investigations, Saxony has been gradually selling off its bitcoin holdings. Recently, a crypto wallet belonging to the German Federal Criminal Police Office has been seen moving thousands of BTC to various exchanges, indicating an intent to sell them off. The wallet’s holdings have decreased to 23,788 BTC.
While some crypto enthusiasts have criticized the decision to sell off such a significant amount of bitcoin, it’s important to understand that this is not a matter of investment strategy, but rather a routine procedure for dealing with confiscated assets. Dr. Lennart Ante, co-founder and CEO of the German-based Blockchain Research Lab, explained that the general prosecutor’s office of Saxony is responsible for liquidating seized assets, and this process is standard protocol, albeit on a larger scale in this case.
It’s worth noting that the wallet containing the confiscated bitcoin belongs to the BKA, not Saxony itself. The BKA was likely involved in the initial investigation and has the technical expertise to handle such a large amount of cryptocurrency. However, the BKA does not have the authority to make independent decisions and acts based on instructions from the state.
In most situations, confiscated assets can only be sold or transferred with the proceeds going to the state budget after receiving approval from a judge. However, in certain cases, states can request an emergency sale if the asset’s value is at risk of rapidly depreciating or if storage becomes an issue due to volatility.
While Saxony’s attempt to sell off a large amount of bitcoin all at once has faced challenges with limited demand, it’s important to recognize that this process is part of the standard procedure for dealing with seized assets. The sale of confiscated bitcoin is not a reflection of Germany’s investment strategy but rather a necessary step in handling assets obtained through criminal investigations.