Governments owning sizable amount of confiscated cryptos

Discussion in 'Cryptocurrencies' started by Pekelo, Feb 18, 2018.

  1. Pekelo


    Well, the list just got bigger. The problem is, we don't know what these governments intend to do with the confiscated BTCs, but it is a safe bet they will eventually sell it, just like then US did a few years ago. But how (auction or small batches of market sales) and when are the real questions and how would that effect the price, when supply suddenly increases?

    Anyhow here is the growing list of countries in historical order:

    1. Japan: This is the infamous Mt.Gox customers' reimbursement. Because by Japanese laws all reimbursements have to be in yen, they have to sell 400 million worth of BTCs. (about 40K coins priced at 10K) They have way more than that, but the rest can just go back to Karpeles in crypto, doesn't need to be sold to exchange it for yen. They have 200K coins altogether.

    2. Bulgaria: 214K coins sized in last May.

    3. Thailand: Last week 100K coins sized from Sergey Medvedev who was the administrator of the darknet escrow service Infraud.

    Let's do the math: that is more than 354K bitcoins entering the market at some point in the probably near future. But could be as high as 514K coins. That is half million coins owned by governments!

    More about the latest seizure:

  2. Here4money


    You're forgetting the Chinese buy back before the exchange ban. I have a feeling that makes these figures pale in comparison.
  3. Pekelo


    Linky? What was the size? I don't remember they did such a thing. Most Chinese just transfered their account to a Korean exchange, IIRC. And the Chinese government was contemplating making of their own crypto, but nothing about big seizure.
    zdreg likes this.
  4. Pekelo


    Apparently Japan sold off some of the coins. Well, most of the legally required, 35K:

    Looks like they were sold around March 5th, when price was 11.5K, so it might have helped to push price lower.
    johnarb likes this.