German Government Gains Back $141 Million in Bitcoin from Multiple Entities

German Government Recovers $141 Million in Bitcoin from Exchanges and Entities

German Government – Late last night, the German government wallet responsible for distributing substantial amounts of bitcoin to exchanges and market entities received 2442 bitcoins. According to Arkham data, the wallet received 903 bitcoin ($52.3 million) from the crypto exchange Kraken and 1529 bitcoin ($88.6 million) from currently unlabeled addresses. Additionally, Bitstamp sent ten bitcoins ($575,000) back to the government wallet.

Significant Bitcoin Inflows Follow Massive Outflows from German Government Wallet

This inflow comes after significant outflows to exchanges and entities were reported yesterday. Over 10,853 bitcoins, worth $637.7 million at the time, were transferred out of the government wallet.

Possible Reasons for Bitcoin Inflows

Steven Zheng, The Block’s Research Director, suggested that these returning bitcoins might be unsold as part of a sale agreement between the crypto exchange and the country. This aligns with the Germany’s strategy to offload 50,000 confiscated bitcoins seized from the defunct film piracy website Movie2K in January.

Criticism from Bitcoin Advocate Joana Cotar

Joana Cotar, a Member of the German Bundestag and a bitcoin advocate, criticized the government’s decision to “hastily” sell its bitcoin holdings without a comprehensive strategy. She described the move as “counterproductive” given the potential long-term benefits of holding the asset.

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