It’s not Germany as a whole that has been selling millions of dollars’ worth of bitcoin, but rather a small German state called Saxony. In January, Saxony confiscated nearly 50,000 BTC and has been selling these holdings as part of standard procedure for assets seized during criminal investigations, according to an expert.
Recent reports worldwide have incorrectly attributed the sales to Germany, causing significant market distress and prompting major sell-offs in crypto prices.
Firstly, it’s important to clarify that the entity selling the cryptocurrency is not Germany itself but the state of Saxony, located in the eastern part of the country.
Secondly, despite criticism from cryptocurrency enthusiasts over the decision to sell such a substantial amount of bitcoin, Saxony is obligated to proceed with the sales due to legal requirements.
Earlier this year, Saxony’s Criminal Police Office (known as LKA in German) seized 49,857 bitcoin, currently valued at almost $3 billion, from the operator of Movie2k.to, a website found guilty of money laundering and other illicit activities.
Recently, a crypto wallet belonging to the German Federal Criminal Police Office (BKA) began transferring thousands of BTC to exchanges like Kraken, Coinbase, and Bitstamp, indicating an intention to sell. The wallet’s bitcoin holdings have since decreased to 23,788 BTC.
Reactions on social media have been critical, with users expressing strong disapproval of the German government’s actions regarding the sale of bitcoin.
“Germany selling all their #Bitcoin will go down as one of the most foolish decisions their politicians ever made,” commented one user.
“Germany’s government officials are showing a lack of understanding,” remarked another.
