German law enforcement authorities recently concluded what they term an “emergency sale” of nearly 50,000 Bitcoin (BTC). Today, the authorities revealed that they netted an unprecedented €2.639 billion ($2.88 billion) from the Bitcoin selloff. In addition, they regulators deemed the BTC price action “irrelevant” to their selloff decision.
German Officials Reveal Actual Reason Of Bitcoin Selloff
The German Bitcoin sale took place between June 19 and July 12, concluding efforts that began in January. During that time, a Bitcoin stash worth about $2.1 billion at seizure was confiscated. The confiscation was part of an investigation targeting piracy websites and money laundering, which involved individuals from Germany and Poland.
Despite the substantial windfall, the proceeds remain under custody pending the outcome of ongoing criminal proceedings. “The proceeds do not initially represent any additional income for the Free State of Saxony, but are held in custody until the criminal proceedings have finally concluded,” stated the prosecutor’s office, according to a report by Decrypt.
The sale was orchestrated through a collaborative effort involving the Saxon Police’s Central Office for the Safeguarding, Custody and Utilization of Cryptocurrencies, and the Dresden Public Prosecutor’s Office. In addition, Bankhaus Scheich, a trading firm in Germany
, played a pivotal role. It was entrusted with the task of executing the sale in a fair manner and minimally disruptive to the market.
“The bank was commissioned to sell the Bitcoins in a way that was fair and gentle on the market,” emphasized the prosecutor’s office. In addition, they highlighted the delicate balance struck between liquidating the assets swiftly and ensuring market stability.
Also Read: Is Ethereum ETF Approval “Sell The News” Event Like Bitcoin ETF?
BTC Price Deemed “Irrelevant” Amid Sell Spree
Bitcoin’s price remained extreme volatile during the sale period, with prices fluctuating from around $65,000 to a low of $55,000. However, authorities maintained that market conditions were deemed “irrelevant” in their decision-making process. “The Bitcoin price and market conditions were ‘irrelevant’ in its decision to sell the BTC and that it was prohibited from waiting for prices to rise,” the prosecutor’s office clarified.
They cited legal requirements that necessitate an “emergency sale” when there is a perceived risk of significant value loss, typically defined as 10% or more. Data compiled by blockchain analytics firm Arkham Intelligence revealed that the seized Bitcoin was liquidated through centralized exchanges such as Kraken, Coinbase, and Bitstamp.
In addition, the German government depended on over-the-counter firms including Flow Traders and Cumberland DRW for the Bitcoin selloff. The specific institutions involved in the sale were detailed, with one participant remaining unidentified.
The decision to proceed with the sale despite market volatility conforms to the asset management regulations in Germany. The prosecutor’s office justified their actions based on the “enormous and extreme speed of price fluctuations” characteristic of Bitcoin. This makes it necessary to adhere to statutory provisions aimed at mitigating financial risk.
Also Read: Mt Gox News: 13K Creditors Repaid In Bitcoin & BCH, Major Selloff Imminent?
This news is republished from another source.
