Bitcoin Price: What is it? [BTC] The price of Bitcoin has dropped significantly over the past few days. It was a result of two factors: The German Government selling its Bitcoins, and the Mt. Gox. Recently, a discovery raised concerns about the reasons why government assets were so heavily discounted. According to recent reports, the German government did not sell the King coin directly. Saxony is a tiny state located in Eastern Germany that sold these assets.
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What is the role of Saxony in this?
Movie2k.to, a website that specializes in money laundering and criminal activities was convicted of these crimes. The state’s Criminal Police Office seized 49,857 BTC, which was worth approximately $3 billion, earlier this year. German Federal Criminal Police Office [BKA] Started transferring Bitcoin in thousands to exchanges. Kraken Coinbase Bitstamp and Kraken were all involved in the transfer around a fortnight ago. It was a sign that the wallet would be sold. The wallet now contains only 23,788 BTC.
The wallet belongs to the BKA, and not Saxony. The police was involved with the original investigation, and they had the necessary technological knowledge to deal with such large amounts of Bitcoin. BKA, however, is only a follower of state orders and does not have any decision-making powers. Lennart Ante is the co-founder of Blockchain Research Lab, a German company. said,
“The general prosecutor’s office of Saxony is responsible for liquidating confiscated assets, and the sell-off is hardly surprising. Seized assets are always liquidated within a certain period. This is a routine business process, although at a larger-than-normal scale.”
Ante also pointed out that a state can do the same thing once a judge gives permission. Bitcoins confiscated are only allowed to be traded or sold. The proceeds go towards the state’s budget. This isn’t the case here. States can request an urgent sale. It may occur if an asset has a high volatility.
Also Read: German Government Preparing to Sell Another $276M in Bitcoin
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Source: watcher.guru