Germany Sells Seized Bitcoins for $2.87 Billion
On July 13, the authorities of Germany completed a series of sales of 50,000 bitcoins seized from the pirate site movie2k. These deals brought approximately $2.87 billion to the state budget, which is $740 million more than the amount paid for bitcoins in January 2024, when their value was $2.13 billion.
However, if the German government had waited a little longer to sell, they could have earned $124 million more. Immediately after the sale, the price of bitcoin rose by 16.55%, due to events such as the attempted assassination of former US President Donald Trump. In March 2024, when the price of BTC reached record levels of almost $74,000, 50,000 bitcoins would have been worth $1.5 billion more.
Experts believe that the German government rushed to sell, underestimating the potential growth of bitcoin’s value. The decision for the «emergency sale» was made after the price of the asset fell by 10% in June 2024, causing concerns about further losses.
By law, the government must sell confiscated assets when there is a risk of their significant devaluation by 10% or more. This explanation was provided by the Dresden prosecutor’s office in response to criticism.
The sale of confiscated cryptocurrency assets is not an isolated case. In 2023, the US government also sold a large portion of bitcoins seized from the dark market Silk Road. Such actions demonstrate the practice of managing confiscated assets, although they raise questions about the best way to deal with such valuable resources.
