• 17 July, 2024
Markets News

Kraken Returns: German Government Recovers $141 Million in Bitcoin

The German government has witnessed a notable return of bitcoins to its coffers after a substantial outflow just a day earlier. The government-controlled wallet responsible for managing large bitcoin transactions with exchanges and market entities received a total of 2,442 bitcoins in recent transactions.

According to data sourced from Arkham, a leading on-chain analytics platform, the wallet received 903 bitcoins, equivalent to approximately $52.3 million, from the prominent cryptocurrency exchange Kraken. 

Additionally, it recorded an influx of 1,529 bitcoins, valued at approximately $88.6 million, from addresses that currently remain unidentified by the analytics platform. Further contributing to the return, Bitstamp also transferred ten bitcoins, amounting to around $575,000, back to the German government’s wallet.

This resurgence of bitcoins back into government control follows a significant movement just the day before. Over 10,853 bitcoins, valued at approximately $637.7 million were transferred out from the same wallet to various exchanges and entities.

Bitcoin Whales Increase Holdings Amid German Government Sell-Off

The rationale behind this influx of bitcoins back to the German government remains linked to a strategic initiative involving the sale of confiscated assets. Notably, these bitcoins were likely part of an unsold portion from a previous sale agreement between the government and crypto exchanges, as speculated by industry analysts.

This recent series of transactions aligns with Germany’s broader strategy concerning the disposition of confiscated bitcoins, particularly those seized from the defunct film piracy website Movie2K earlier this year. The government has aimed to liquidate approximately 50,000 seized bitcoins, of which these recent transactions form a crucial part.

Criticism has not been absent from this strategy, however. Joana Cotar, a member of the German Bundestag known for her advocacy in digital currencies, expressed disapproval over what she deemed a hasty approach to selling off government-held bitcoins.

Cotar emphasized the importance of a comprehensive national strategy towards digital assets, cautioning that rushed sales could be counterproductive in the long term.

Bitcoin ETF Trading Hits $2.13B Daily: What's Next? Read Previous

Bitcoin ETF Trading Hits $2.13B Daily: What's Next?

Bonk (BONK) Faces Strong Resistance at $0.00002680: Will It Break? Read Next

Bonk (BONK) Faces Strong Resistance at $0.00002680: Will It Break?