Justin Sun Offers to Buy Germany\'s $2.3B Bitcoin Holdings to Stop Selling Pressure

Justin Sun, a household name in the crypto ecosystem, has verbalized his idea to buy bitcoin reserves from a German government-labeled crypto wallet

Justin Sun, a well-known figure in the crypto space, has expressed his intention to purchase bitcoin reserves from a German government-labeled crypto wallet off-market. This move is aimed at countering the selling pressure created by the wallet each time a portion of its holdings is shifted to centralized exchanges (CEXs).

Sun took to X to announce his plan, stating, “I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.” The deal would be exceptional, considering the wallet's holdings, which exceed $2.3 billion in bitcoin.

Earlier this year, the German government acquired 50,000 bitcoins after seizing them from Movie2k, a website involved in movie piracy. Since February, the government has been selling portions of the seized bitcoin, with the intention to fully liquidate its holdings. Arkham Intelligence traced the wallet back to the German government, labeling it ‘German Government (BKA).’

READ MORE: German Government Transfers $172 Million in Bitcoin

The BKA, or Federal Criminal Police Office of Germany, was responsible for taking down Movie2K and seizing its stash of bitcoin. Justin Sun's proposal to acquire the bitcoins linked to the BKA aims to prevent further declines in the price of the largest cryptocurrency.

On July 4, the wallet shifted approximately 3,000 bitcoins, valued at $172 million, in the latest such transaction. While a portion exceeding $90 million was sent to an unknown address, the remaining $75 million was channeled to CEXs Kraken, Coinbase, and Bitstamp.

These transactions caused bitcoin's price to drop immediately, reaching lows not seen since May, falling below the $57,000 mark. Throughout the latter half of June, bitcoin prices struggled to ascend, with the asset losing a significant part of its gains from May due to this wallet's actions of moving thousands of bitcoins to CEXs for liquidation.

By selling its bitcoins off-market, such issues can be avoided, allowing bitcoin to continue rising as the market remains bullish.

Photo by Bernd Scheumann on Pixabay

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