Why is Bitcoin falling? On-chain data: The German government is suspected of liquidating 50,000 stolen Bitcoins

German government liquidates stolen Bitcoin money

According to “Cointelegraph”, a cryptocurrency wallet labeled “Germany Government (BKA)” by on-chain intelligence company Arkham transferred Bitcoin for the first time on June 19, a move that led many to believe that the German government may be selling its seized Bitcoins. currency.

It is understood that these Bitcoins came from the German police who seized 50,000 bitcoins from a pirated movie syndicate during a raid in January this year. They are the largest cryptocurrency assets seized in Germany so far. According to Arkham data, the German government cryptocurrency wallet hosting the ill-gotten money transferred nearly 6,500 Bitcoins for the first time on June 19.

The German government-related wallet conducted four transactions on June 19, of which 6,500 BTC worth more than $425 million flowed out to the wallet address "bc1q0unygz3ddt8x0v33s6ztxkrnw0s0tl7zk4yxwd", and another transaction worth $154 million was transferred to the German government's own address.

The wallet address that received 6,500 Bitcoins then transferred 2,500 Bitcoins to another wallet address "bc1qq0l4jgg9rcm3puhhfwaz4c9t8hdee8hfz6738z". The wallet address then transferred the newly received funds out in four installments. Two of the transactions went to cryptocurrency exchanges Kraken and Bitstamp, while the other two were moved to unmarked private addresses.

Wallets flagged by the German government still hold 43,359 Bitcoins worth $2.83 billion.

Seizures of assets in countries around the world pose a risk of selling

The number of Bitcoins seized by governments around the world is a potential risk that cannot be ignored in the cryptocurrency market. In addition to the German government, the US government has also confiscated a large number of Bitcoins from the Bitfinex hacking case, Silk Road and other related cases. According to data from bitcointreasuries, the U.S. government currently holds a total of approximately 207,000 Bitcoins, with a total value of approximately US$13.5 billion.