Justin Sun Eyes $2.3 Billion Bitcoin Buy from Germany to Mitigate Market Impact

Sean Millare
Jul 6, 2024

Justin Sun, the creator of Tron, has suggested buying the remaining $2.3 billion worth of Bitcoin that was confiscated by the German government. This proposal comes after Germany made several large transfers of Bitcoin to exchanges in an attempt to sell off the digital currency, resulting in a considerable drop in the market.

Source: Justin Sun

On Thursday, the German government has once again made headlines by transferring approximately $75 million worth of Bitcoin to major cryptocurrency exchanges. This move has contributed to a significant drop in the price of Bitcoin, which has fallen to $53,377.2, reflecting a decline of 7% from yesterday and 15% from the previous week.

Source: PeckShieldAlert

The German Federal Criminal Police Office (BKA) moved around 1,300 Bitcoin to exchanges including Bitstamp, Coinbase, and Kraken. This transaction is part of a series of similar transfers over the past two weeks, totaling hundreds of millions of dollars in Bitcoin. Since June, the German government has transferred around $315 million worth of Bitcoin, indicating a potential strategy to liquidate parts of its reserves.

Governments worldwide, including Germany, regularly confiscate Bitcoin and other digital assets linked to criminal activities. These assets are typically sold through occasional auctions. The United States government, for example, has already auctioned off a significant portion of the Bitcoin seized from the infamous dark web marketplace Silk Road. In 2014, American businessman and Bitcoin advocate Tim Draper purchased 29,656 BTC from the Silk Road seizure at an auction organized by the U.S. Marshals Service.

In a tweet on Thursday afternoon, Sun expressed his willingness to engage in discussions with the German government for the off-market purchase of all BTC. This move aims to reduce any potential negative effects on the market. According to blockchain analytics firm Arkham Intelligence, Sun's crypto wallet currently contains approximately $1 billion in funds.

Source: Arkham Intelligence

According to Arkham Intelligence, a wallet associated with the German BKA has already sold $300 million worth of Bitcoin. This includes transactions of $94 million to Coinbase, $84 million to Kraken, and $91 million to Bitstamp. Furthermore, the wallet, which currently contains $2.3 billion in Bitcoin, also transferred $44 million to Flow Traders, a market maker based in Amsterdam.

Sean Millare

Sean, a skilled writer, gamer, trader, and investor, with a passion for all things web3. With a practical touch, he sheds light on the evolving crypto scene, helping readers grasp blockchain intricacies and make savvy decisions in decentralized finance.

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