Justin Sun has offered to purchase the German government’s $2.3 billion worth of Bitcoin outside the market to prevent potential negative impacts on the cryptocurrency’s price.
Sun’s Proposal
Tron founder Justin Sun has once again taken on the role of a savior with his offer to buy the German government’s Bitcoin holdings, valued at over $2.3 billion. Sun made this announcement via a tweet on July 4, expressing interest in acquiring Bitcoin (BTC) off-market to avoid significant price impact on the cryptocurrency.
In his tweet to his 3.5 million followers, Sun stated:
“I am ready to negotiate with the German government to purchase all BTC off-market to minimize the impact on the market.”
This is not the first time Sun has intervened in a potential crisis. Previously, he offered to stabilize the market during the FTX crisis.
History of German Government BTC Holdings
The wallet with the German government’s label first drew attention on June 19 when it transferred 6,500 BTC, valued at over $425 million. This move raised concerns about a potential market sale that could negatively impact Bitcoin’s price. The wallet, labeled by Arkham Intelligence as “German Government (BKA),” has been actively transferring Bitcoin since mid-June.
The Bitcoin in question was seized by the Federal Criminal Police Office (BKA) in January. The BKA seized 50,000 BTC from the operators of the Movie2k piracy website.
Responsibility for BTC Sale
While the exact authority responsible for the Bitcoin sale remains unclear, BKA spokesperson Kristina Sawazki clarified that the criminal unit does not hold the seized Bitcoin. According to Sawazki,
“Firstly, the sale or conversion of seized Bitcoin into euros is the responsibility of the competent prosecutor’s office or court. The proceeds from the seized assets are deposited with the Land Registry Office of the jurisdiction where the competent court is located, according to Article 60 of the Code of Criminal Procedure. The BKA retains only crypto-assets that have been seized or confiscated during investigations for prosecutorial authorities.”
Recent Transactions and Implications
On July 4th, the wallet transferred Bitcoin worth $172 million to various cryptocurrency wallets, including three popular centralized exchanges (CEX) – Coinbase, Kraken, and Bitstamp. This transfer indicates that the German government may be preparing to sell its Bitcoin holdings. Prior to this, on July 2nd, the wallet moved BTC worth $52 million, including 100 BTC to Coinbase, 150 BTC to Bitstamp, and 32.74 BTC to Kraken.
The ongoing sale of Bitcoin from the wallet labeled as belonging to the German government has been a hot topic among traders. Sun’s offer to buy Bitcoin off-market aims to mitigate any negative market impact. His intervention could help stabilize the price of Bitcoin, preventing potential instability that could arise from such large-scale transactions.
Disclaimer: This article is provided for informational purposes only. It is neither intended nor should be construed as legal, tax, investment, financial, or other advice.