A crypto wallet labeled “German Government (BKA)” by the onchain analytics firm Arkham started moving Bitcoin on June 19, drawing attention from the crypto community. This activity has sparked speculation that the German government might be selling its BTC holdings.
Seized Bitcoin from Movie Piracy Site
According to Arkham data, the wallet has held nearly 50,000 Bitcoin since February 2024. On June 19, the wallet moved approximately 6,500 BTC. These funds are believed to have been seized from Movie2k, a pirated movie platform.
Recent Transactions
The German government-linked wallet made four transactions on June 19, including an outflow of 6,500 BTC worth over $425 million to a specific wallet address, and another 2,500 BTC worth $154 million to its own address. The receiving wallet then moved 2,500 BTC in four 500 BTC transactions. Two of these transactions were sent to crypto exchanges Kraken and Bitstamp, while the other two were transferred to private addresses.
Current Holdings and Market Speculation
The wallet currently holds 43,359 BTC worth $2.83 billion. Although not all transferred funds were liquidated, the movement has led to speculation about the potential market impact. Some traders suggested that the recent increase in short positions and the dip in Bitcoin prices might be related to the German government’s actions.
Government Sales of Seized Bitcoin
Governments around the world often confiscate Bitcoin and other digital assets from criminals and occasionally auction these holdings. For example, the United States government has sold a significant amount of BTC seized from the Silk Road, with notable purchases made by investors like Tim Draper in auctions organized by the U.S. Marshals.
