German Government (BKA) Crypto Wallet Begins Moving Bitcoin, Prompting Speculation
On June 19, a crypto wallet associated with the German government, identified as “German Government (BKA)” by the onchain analytics firm Arkham, initiated the movement of Bitcoin, causing a stir within the community. This activity has led many to speculate that the German government may be in the process of selling off its BTC holdings.
According to data from Arkham, the crypto wallet has been holding close to 50,000 Bitcoin (BTC) since February 2024, and it recently transferred nearly 6,500 BTC on June 19. These funds are believed to have been seized from the operator of the pirated movie website Movie2k.
The German government-linked wallet conducted four transactions on June 19, including an outflow of 6,500 BTC valued at over $425 million to a wallet address “bc1q0unygz3ddt8x0v33s6ztxkrnw0s0tl7zk4yxwd,” and another of 2,500 BTC worth $154 million to its own address. Subsequently, the wallet address received 6,500 BTC and then moved 2,500 BTC to another wallet address, “bc1qq0l4jgg9rcm3puhhfwaz4c9t8hdee8hfz6738z,” which subsequently transferred the funds in four transactions. Two of these transactions were sent to crypto exchanges Kraken and Bitstamp, while the other two were moved to unlabeled private addresses.
As of now, the German government-labeled wallet is holding 43,359 BTC, valued at $2.83 billion. While not all of the transferred funds have been liquidated, numerous figures within the crypto community have expressed their opinions on the potential impact of selling off such a substantial amount of BTC.
One crypto trader suggested that the recent surge in short positions and the decline in the Bitcoin market could be attributed to the German government’s selling activity.
It is common for governments worldwide to confiscate Bitcoin and other digital assets from criminals and periodically conduct auctions to sell off seized crypto holdings. For example, the United States government has already sold a significant portion of the BTC confiscated from the notorious dark web marketplace, the Silk Road. American businessman and Bitcoin advocate Tim Draper notably acquired Silk Road BTC in 2014 at an auction organized by the U.S. Marshals.