German authorities have announced the completion of an emergency sale of nearly 50,000 bitcoins, raising about 2.6 billion euros. They explained that this sale was mandated to avoid a potential value decline due to the crypto’s price volatility. The funds are now secured for criminal proceedings at the Leipzig Regional Court.
2.64 Billion Euros Raised From Emergency Bitcoin Sale
The German state of Saxony announced on Tuesday the completion of an “emergency sale of nearly 50,000 bitcoins,” raising approximately 2.64 billion euros ($2.89 billion). The BTC sale, conducted by the Dresden Public Prosecutor’s Office and Frankfurt-based bank Bankhaus Scheich Wertpapierspezialist AG, occurred between June 19 and July 12, with assistance from the Federal Criminal Police Office.
The sale of 49,858 bitcoins generated 2,639,683,413.92 euros, which are provisionally secured for the “movie2k” criminal case at the Leipzig Regional Court. The court’s decision on confiscation is uncertain, leaving the funds’ legal status pending. The proceeds are held in custodial deposit until the case concludes.
An “emergency sale” was executed by the Dresden Public Prosecutor’s Office under § 111p of the Code of Criminal Procedure, due to the risk of a significant loss in value. “The sale of valuable items before the conclusion of ongoing criminal proceedings is legally required whenever there is a risk of a significant loss of value of around ten percent or more,” the announcement notes (translated by Google), adding:
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These conditions were always met with the volatile bitcoins due to the enormous and extremely rapid price fluctuations.
The BTC sale was conducted in small tranches over three and a half weeks, ensuring minimal market disruption, German authorities explained, adding: “From the beginning, less than 1% of the market volume of bitcoins was regularly traded over the counter (OTC) in a way that was gentle on the market. At this scale, there is no direct influence on the bitcoin price.”
The announcement notes that “When an emergency sale is carried out as quickly as possible, any speculation on the price or waiting for prices to rise is prohibited for a law enforcement agency,” concluding:
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The proceeds do not initially represent additional income in the state budget for the Free State of Saxony, but are held in safe custody until the criminal proceedings are finally concluded.
Source: https://news.bitcoin.com/german-authorities-announce-bitcoin-sale-completion-net-e2-6-billion/