Analysis: German law enforcement agencies dumped bitcoin as a non-investment strategy, but instead carried out standard criminal investigation procedures

A week ago, the crypto wallet owned by the German Federal Criminal Police (BKA) began transferring thousands of bitcoins to exchanges such as Kraken, Coinbase, and Bitstamp, indicating an intention to sell these bitcoins. The wallet's bitcoin holdings have been reduced to 23,788. Lennart Ante, co-founder and CEO of the German blockchain research lab Blockchain Research Lab, said that the dumping of bitcoins by German law enforcement agencies is not an investment strategy, but a standard procedure applicable to the confiscation of assets in criminal investigations.
In addition, the analysis found that it was not the German government itself that sold bitcoin, but a small state in eastern Germany called Saxony. The Saxony Attorney General's Office is responsible for liquidating the confiscated assets, so the asset sell-off is not surprising. It is reported that the seized assets need to be liquidated within a certain period of time, which is a regular business process, although this time it is larger than normal. In most cases, the confiscated assets can only be transferred or sold if a judge decides to allow the state government to do so, and the proceeds will go to the state budget, which is not the case in this case, but the states can request to initiate an emergency sale, for example, if the value of the asset is likely to depreciate rapidly or be difficult to store.