Justin Sun, the founder of Tron, has made a proposal to acquire the German government’s Bitcoin holdings, worth over $2.3 billion. Sun wants to buy the Bitcoin off-market to avoid a negative price impact. On July 4, Sun shared this offer with his 3.5 million followers on X:
“I am willing to negotiate with the German government to buy all BTC off-market to minimize the impact on the market.”
Sale could potentially negatively impact BTC price
Suspicions of a possible Bitcoin sale by the German government first arose on June 19, when a government-tagged wallet transferred 6,500 BTC, worth over $425 million. Traders fear that the sale of the remaining holdings could negatively impact the Bitcoin price.
The wallet in question contained nearly 50,000 BTC as of February 2024, presumably seized from pirate movie website Movie2k. The Arkham Intelligence platform tagged the crypto wallet as belonging to the “German Government (BKA),” referring to the country’s Federal Police Office.
50,000 Bitcoin Seized
The BKA seized 50,000 BTC in Dresden in January, which came from Movie2k. However, it is still unclear which authority is responsible for the sale of the BTC. A spokeswoman for the BKA stated that the criminal unit does not have the seized Bitcoin in its possession:
“In principle, the sale or conversion of seized Bitcoins into euros is the responsibility of the relevant public prosecutor’s office or court. The proceeds of seized assets are paid to the Land Revenue Office of the place where the competent court is located, in accordance with Article 60 of the Code of Criminal Procedure. The BKA only stores crypto assets that have been seized or seized in the context of investigations for the offices of the public prosecutor’s office.”
With this offer from Justin Sun, it remains to be seen how the German government will respond and what steps will be taken to control the market impact of such a large Bitcoin transaction.
Source: https://newsbit.nl/tron-oprichter-justin-sun-biedt-aan-om-bitcoin-van-duitse-overheid-te-kopen/
