Arkham, a crypto onchain analytics firm, observed that a crypto wallet linked to the German Government (BKA) began moving Bitcoin on June 19, causing a stir in the community. This activity has led many to speculate that the German government may be selling its BTC holdings.
The wallet, according to Arkham data, has been holding nearly 50,000 Bitcoin (BTC) since February 2024, but on June 19, it moved almost 6,500 BTC. It is believed that these funds were seized from the operator of the pirated movie website, Movie2k.
On June 19, the German government-affiliated wallet made four transactions, one of which was an outflow of 6,500 BTC worth over $425 million to the wallet address “bc1q0unygz3ddt8x0v33s6ztxkrnw0s0tl7zk4yxwd,” and another of 2,500 BTC worth $154 million to its own address. The wallet address then received 6,500 BTC and transferred 2,500 BTC to another wallet address, “bc1qq0l4jgg9rcm3puhhfwaz4c9t8hdee8hfz6738z,” which then moved the funds in four 500 BTC transactions. Two of these transactions were sent to crypto exchanges Kraken and Bitstamp, while the other two were transferred to non-labeled private addresses.
As of now, the German government-labeled wallet holds 43,359 BTC worth $2.83 billion. While not all the transferred funds were liquidated, many in the crypto community have commented on the potential impact of such a large sale of BTC.
One crypto trader has suggested that the recent increase in short positions and the dip in the Bitcoin market could be attributed to the German government’s selling activity.
It is not uncommon for governments around the world to confiscate Bitcoin and other digital assets from criminals, and they often hold auctions to sell these seized crypto holdings. The United States government has already sold a significant portion of the BTC seized from the infamous dark web marketplace, the Silk Road, with American businessman and Bitcoin advocate Tim Draper purchasing some of the Silk Road BTC at an auction organized by the U.S. Marshals in 2014.