Justin Sun Offers $2.3B OTC Bitcoin (BTC) Deal to German Government to Prevent Market Disruption

As a researcher with experience in the cryptocurrency market, I find Justin Sun’s proposal to purchase the German government’s $2.3 billion Bitcoin holdings off-market intriguing. The potential impact of selling such a significant amount of Bitcoin on the market price is undeniable.

I’ve come across news that Justin Sun has proposed an off-market deal worth $2.3 billion to acquire the German government’s Bitcoin holdings. The rationale behind his offer is to mitigate any potential adverse effects on Bitcoin’s price in the market.

Sun’s Proposal

Justin Sun, the founder of Tron, has once more stepped in as a potential buyer for the German government’s substantial Bitcoin holdings, valued at approximately $2.3 billion. Sun publicly expressed his intention to acquire these Bitcoins privately to prevent any considerable influence on the cryptocurrency’s market price through a July 4 tweet.

In his tweet to his 3.5 million followers, Sun stated, 

I’m prepared to engage in private negotiations with the German government for the purpose of buying up all their Bitcoin holdings, aiming to reduce market disruptions.

I’ve observed Sun taking proactive measures before in times of market instability. Specifically, during the FTX crisis, he proposed steps to help restore calm and order.

Background of German Government’s BTC Holdings

On June 19, a German government-linked wallet came under scrutiny after it transferred approximately 6,500 Bitcoins, equivalent to over $425 million at the time. This significant transaction sparked worry among market observers about a potential sell-off, which could lead to a decrease in Bitcoin’s value. Labeled by Arkham Intelligence as “German Government (BKA),” this wallet has been consistently moving Bitcoins since mid-June.

As a researcher, I’d put it this way: In January, I discovered that the German Federal Criminal Police Office (BKA) had confiscated 50,000 Bitcoins from the administrators of the illicit movie-sharing platform Movie2k.

Responsibility for BTC Sale

As a researcher investigating the sale of Bitcoin in question, it’s important to note that the specific authority overseeing this transaction remains undisclosed. However, I can share that BKA spokeswoman Kristina Sawazki has confirmed that their criminal unit does not possess the seized Bitcoin.

When it comes to selling or exchanging confiscated Bitcoins into Euros, the responsible public prosecutor’s office or court holds this duty in theory. Any proceeds from seized assets are then transferred to the Land Revenue Office located in the jurisdiction of the presiding court, as outlined in Article 60 of the Criminal Procedure Code. The Federal Crime Police (BKA) merely preserves crypto-assets that have been taken or forfeited during investigations for the benefit of the public prosecutor’s offices.

Recent Transactions and Implications

On July 4th, a Bitcoin wallet linked to the German government transferred approximately $172 million in cryptocurrency to several crypto wallets, including three major centralized exchanges: Coinbase, Kraken, and Bitstamp. This significant transaction indicates that the German authorities might be planning to dispose of their Bitcoin holdings. Previously, on July 2nd, the same wallet moved around $52 million in BTC, with smaller amounts going to Coinbase ($100), Bitstamp ($150), and Kraken (32.74 BTC).

As a crypto investor, I’ve noticed the persistent selling of Bitcoin from the German government-labeled wallet, which has sparked concern among traders. To counteract any potential market disruption, Elon Musk, through Sun Technologies, has proposed an off-market purchase of Bitcoin. This intervention could help maintain price stability by absorbing the supply and reducing the likelihood of volatility caused by such significant transactions.

Read More

2024-07-05 18:10