“The new building of the Forensic Science Institute in Wiesbaden’s Äppelallee”. Photo by “Wo st 01” via Wikimedia Commons. License: CC BY-SA 3.0 de

At the end of January, the Saxony State Criminal Police Office confiscated 50,000 Bitcoins from the former video platform Movie2k.to. The BKA is now starting to sell the Bitcoins – but is still keeping a substantial, inflation-resistant reserve.

When the State Criminal Police Office (LKA) of Saxony announced in January that it had confiscated Bitcoins from the people behind the illegal video platform Movie2k.to, it was a sensation – because the sum of 50,000 Bitcoins was so fantastically high that in the hands of the LKA it looked like a tuna in a goldfish bowl. 50,000 Bitcoins, at the time two billion euros, today almost three billion euros, exceed the entire annual budget of the Saxon Ministry of the Interior.

However, the Federal Criminal Police Office (BKA) subsequently took on this probably largest seizure in German police history. The officers there prepared the sale – and now appear to be starting. The BKA’s bitcoins were marked on the public analysis platform Arkham Intelligence so that the public can see what is happening with them.

Around six days ago, the wallets started moving. As a test, the BKA sent 0.001 BTC – a good 60 euros – to four exchanges, Bitstamp, Coinbase, Kraken and presumably Bitcoin.de. After the transactions were successful, it began depositing the first batches of 500 bitcoins each – almost 30 million euros – on the exchanges five days ago. It has now deposited around 1,000 more bitcoins; a withdrawal of 300 bitcoins from the Kraken exchange four days ago is somewhat puzzling.

According to Arkham Intelligence, the BKA currently holds 47,179 Bitcoin, which still corresponds to almost 2.7 billion euros. If the BKA had 2,700 Bitcoins on the exchanges and, hypothetically, sold them all, this would correspond to a good 150 million euros. No small sum, and one that the BKA certainly knows what to do with – but only a drop in the total holdings.

Bitcoins may benefit criminals, and they may have helped the creators of Movie2k and other cybercriminals to accept and conceal money. But today the police are profiting massively from them, and the German police in particular enjoy an almost inexhaustible reserve thanks to Bitcoin. If the BKA does not dump the coins on the market according to protocol and without regard to the price, but sells them according to the financial needs of the agency and the price trend – then the German police would be the first agency in the world to hold Bitcoins in a similar way to MicroStrategy: it would make Bitcoin its primary liquid reserve. The BKA would have a “Bitcoin strategy”; the money of hackers and cybercrime would be transmuted into the money of the police and law enforcement.

However, none of this is particularly good news for Bitcoin holders. The fact that the BKA is putting the coins on the market at almost the same time as the bankruptcy administrator of Mt. Gox is putting the recovered Bitcoins on the market could exert unpleasant selling pressure that could put a damper on any price euphoria for the rest of the year.

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Source: https://bitcoinblog.de/2024/06/25/deutsche-polizei-schoepft-bitcoin-kursgewinne-ab/

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