Justin Sun, the founder of Tron, has proposed acquiring Bitcoin holdings from the German government amounting to more than $2.3 billion. This move aims to potentially mitigate the adverse effects on Bitcoin’s market price that could result from a direct sale.
Sun unveiled his proposition in a July 4th announcement on X, addressing his 3.5 million followers. The German government’s Bitcoin wallet drew attention on June 19th when it initiated a transfer of 6,500 BTC valued at over $425 million, sparking concerns about potential market impacts if the remaining holdings were to be liquidated. Prior to this transaction, the wallet had held nearly 50,000 BTC since February 2024, reportedly originating from assets seized from Movie2k, a defunct pirate movie website.
The wallet, identified by the Arkham Intelligence platform as belonging to the German Federal Criminal Police Office (BKA), had seized the BTC in Dresden in January. Despite speculations, a BKA spokesperson clarified that the agency itself is not involved in the Bitcoin sales.
According to Kristina Sawazki, spokesperson for the BKA, the German government has been steadily offloading Bitcoin since mid-June, with the latest transfer on July 4th amounting to $172 million sent to various crypto wallets, including significant sums directed to popular centralized exchanges like Coinbase, Kraken, and Bitstamp. Earlier, on July 2nd, the wallet transferred $52 million worth of BTC, distributing portions among these same exchanges.
The ongoing sales have attracted attention within the cryptocurrency community, particularly amid discussions about their potential impact on market dynamics, such as Bitcoin’s price trajectory amidst broader financial uncertainties.