By
Mayowa Adebajo
July 4th, 2024
The German Federal Criminal Police Office (BKA) sent another 100 BTC ($6.2 million) to Coinbase, 150 BTC ($9.4 million) to Bitstamp, and 32.74 BTC ($2 million) to Kraken on July 2, according to Arkham.
The German Federal Criminal Police Office (BKA) continues to offload seized Bitcoin. Following yesterday’s transfer of 1,500 Bitcoin (BTC) ($94 million) to various exchanges, the BKA recently sent another $17.6 million worth of cryptocurrency to major platforms Coinbase, Bitstamp, and Kraken. This transaction follows a series of transfers initiated last month after authorities confiscated 50,000 BTC from the defunct film piracy site Movie2k in January.
On July 2, BKA wallets, identified by on-chain analytics firm Arkham, transferred specific amounts to each exchange: 100 BTC ($6.2 million) to Coinbase, 150 BTC ($9.4 million) to Bitstamp, and 32.74 BTC ($2 million) to Kraken. These transfers contribute to previous transactions throughout June, bringing the total value of moved Bitcoin to approximately $193 million directed towards exchanges.
Additionally, Arkham sent $251 million to an unidentified address labeled “139Po”, which might be another exchange.
German Government’s Multifaceted Bitcoin Strategy
The frequent transfers to the “139Po” address raise questions about its purpose. While Arkham hasn’t definitively identified it, we can’t rule out the possibility that it is another exchange handling the liquidation of seized Bitcoin. Confirming its exact nature would require further investigation or official statements from German authorities.
The German government’s strategy regarding the seized Bitcoin appears multifaceted. On June 26, a 345.34 BTC ($21.2 million) transaction was sent to market maker Flow Traders, suggesting a potential sale through their services. However, there’s also evidence of repurchases.
On June 27th, the German government received a combined 475 BTC ($29.2 million) from addresses linked to Kraken, Bitstamp, and Coinbase. This follows previous inflows from these exchanges and Robinhood totaling 400 BTC ($25.6 million).
Germany Remains a Major Bitcoin Holder
Despite these recent offloads, Germany retains a significant position in the global Bitcoin market. With their remaining holdings of 43,859 BTC (valued at $2.7 billion), they rank among the top nation-state holders, behind the United States (213,246 BTC), China (estimated 190,000 BTC), and the United Kingdom (61,000 BTC).
The ongoing sale of seized Bitcoin by the German government coincides with a slight decline in the cryptocurrency’s price. Since these transfers began on June 18th, Bitcoin has slightly gained 0.15%, currently trading at $62,737. Whether these sales contribute significantly to the price movement remains to be seen, but it’s a factor to consider in the ongoing market analysis.