Cryptocurrencies

Justin Sun Wants to Buy All of Germany’s Bitcoin


Justin Sun, the founder of Tron, has offered to take over all of Germany’s Bitcoin. He wants to minimize the market impact by trading off-exchange.

Sun declared: ‘I am willing to negotiate with the German government to buy all BTC outside the market, so that the impact on the market remains minimal.’

German government sells Bitcoin

The German government moved its Bitcoin reserves to exchanges. On July 4, the Federal Criminal Police Office (BKA) moved approximately $75 million worth of Bitcoin in multiple transactions. These Bitcoins ended up on exchanges such as Coinbase, Kraken, and Bitstamp.

Since mid-June, Germany has moved around $315 million worth of Bitcoin to various platforms. In less than a month, Germany sold over $390 million worth of Bitcoin.

These activities follow the seizure of almost 50,000 Bitcoin by the BKA in 2013. These Bitcoins were linked to the former administrator of the piracy website Movie2K and are now worth an estimated $2.3 billion.

The steady flow of Bitcoin onto exchanges points to possible plans by Germany to sell off parts of its reserves, raising concerns about a negative impact on the Bitcoin pricewhich fell below $58,000 this week.

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Leftover Bitcoin

After the last moves, Germany still holds about 40,000 Bitcoin. The quantities sold are therefore relatively small compared to the huge stock that the BKA still has.

These sales are similar to recent transfers by the US government. The US also holds Bitcoin that has been confiscated in criminal cases, raising concerns that they too are selling their reserves.

The timing of these sales is important, as repayments to creditors of the 2014 collapsed Mt. Gox exchange are set to begin in July. This could further increase selling pressure on Bitcoin.



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