Justin Sun MoveS to Ease Bitcoin Selling Pressure with $2.3B Purchase Offer

Justin Sun, founder of Tron, has offered to purchase the German government’s Bitcoin holdings, which are valued at more than $2.3 billion. The well-known cryptocurrency pioneer has stated that he may be willing to buy Bitcoin BTC directly from the market to mitigate the adverse effect that selling would have on the price. The offer was publicized by Sun in a post that he made on July 4th, X, to his 3.5 million followers:

“I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.”

A transfer of 6,500 Bitcoins, which was valued at more than $425 million, was carried out by the German government-labeled wallet on June 19, which was the first time that suspicions were raised over the sale of Bitcoin.

The market selling the remaining holdings might have a negative impact on the price of Bitcoin, which is why the wallet became a hot issue among traders because of this potential impact.

The wallet had almost 50,000 BTC in its possession before the first transfer, which occurred in February 2024. The cash is thought to have been taken from Movie2k, the operator of the website associated with pirated movies.

The cryptocurrency wallet was identified as belonging to the “German Government (BKA)” by the Arkham Intelligence platform. This designation is a reference to the Federal Criminal Police Office (BKA) of Germany.

It is thought that the origin of these monies is the pirate movie website operator Movie2k, which received 50,000 BTC that was seized by the BKA in Dresden in January 2017.”

Although it is not yet known whose authority is selling the Bitcoin, a representative for the BKA has confirmed that the criminal unit does not already possess the Bitcoin that was confiscated. Kristina Sawazki, spokeswoman of the BKA stated: 

“In principle, the sale or conversion of seized Bitcoins into Euros is the responsibility of the relevant public prosecutor’s office or court. The proceeds of seized assets are paid to the Land Revenue Office of the place where the competent court has its seat, in accordance with Article 60 of the Code of Criminal Procedure. The BKA only preserves crypto-assets seized or confiscated in the course of investigations for the public prosecutor’s offices.”

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Since approximately the middle of June, the wallet that the German government designates has been continuously selling Bitcoin prices.

In its most recent transaction, which took place on July 4, the wallet moved $172 million worth of Bitcoin to several different cryptocurrency wallets. A portion of the funds was sent to three well-known centralized cryptocurrency exchanges (CEXs).

A total of 75 million dollars worth of Bitcoin was sent to the exchanges of Coinbase, Kraken, and Bitstamp, so the wallet may be considering selling the Bitcoin.

Two days earlier, on July 2, the wallet marked by the German government transferred a total of $52 million worth of Bitcoin. Of this amount, 100 Bitcoin was sent to Coinbase, 150 Bitcoin was sent to Bitstamp, and 32.74 Bitcoin was sent to the Kraken exchange.

Conclusion: Mitigating Bitcoin Selling Pressure

Justin Sun’s bid to purchase the German government’s Bitcoin holdings signifies a pivotal moment in the cryptocurrency market. As the founder of Tron, Sun’s offer aims to cushion the market from potential volatility that could arise from such a significant sale. The German government, having previously transferred substantial amounts of Bitcoin, faces scrutiny over the impact of its actions on Bitcoin prices.

Despite the uncertainty surrounding the responsible authority for the sales, the move highlights the intricate balance between governmental actions and market stability. Sun’s proposition, if accepted, could set a precedent for how large-scale crypto assets are handled by authorities in the future, showcasing the evolving dynamics between government holdings and the private sector in the crypto ecosystem.