German Government Continues Massive Bitcoin Transfers to Crypto Exchanges

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CONTENT

In a series of transactions, German authorities moved over 2,500 BTC worth $146.8 million to major exchanges and crypto entities, continuing their strategy to liquidate 50,000 confiscated bitcoins from the Movie2K piracy case.

The German government has continued its significant bitcoin transfers to major cryptocurrency exchanges and entities, signaling the ongoing execution of its plan to liquidate a substantial cache of confiscated digital assets. On Thursday, a wallet controlled by German authorities initiated a series of transactions involving over 2,500 bitcoins, valued at approximately $146.8 million.

Beginning at 7:50 a.m. UTC, the government moved equal amounts of 375 bitcoins ($21.8 million each) to three prominent exchanges: Bitstamp, Kraken, and Coinbase. This cumulative transfer of 1,125 BTC ($65.3 million) was accompanied by additional movements to other crypto entities. Notably, 1,000 BTC ($58.1 million) was transferred to a wallet associated with B2C2 Group, as identified by blockchain analytics firm Arkham. Another 250 BTC ($14.5 million) was sent to what is believed to be an over-the-counter (OTC) service institutional deposit address.

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Later in the day, at approximately 10 a.m. UTC, German authorities executed an additional transfer of nearly 152 BTC ($8.9 million) to cryptocurrency market maker Cumberland DRW. These transactions follow a similar pattern observed on Wednesday, where over 10,853 BTC (worth $637.7 million at the time) were moved to comparable destinations.

The ongoing transfers are part of the German government’s strategy to sell 50,000 bitcoins that were confiscated from Movie2K, a now-defunct film piracy website, in January. This approach has faced criticism, with Joana Cotar, an independent member of the German Bundestag and bitcoin advocate, describing it as “counterproductive.”

Despite these significant movements, the German government still retains a substantial bitcoin holding. According to Arkham’s data, authorities continue to hold approximately 13,025 BTC, valued at over $758 million.

The cryptocurrency market has shown resilience in the face of these large-scale transfers. Bitcoin’s price experienced a modest decline of less than 1% on the day, trading at $58,342. However, it’s worth noting that since the German authorities began their transfer activities on June 18, bitcoin’s value has decreased by around 10%.

As the German government proceeds with its liquidation strategy, market participants and analysts will be closely monitoring the impact on bitcoin’s price and overall market dynamics. The systematic sale of such a large quantity of bitcoin raises questions about potential market effects and the broader implications for cryptocurrency adoption and regulation in Germany and beyond.