Dresden ist eine wundervolle Stadt – die sich leider die Accidental entgehen ließ, einen prachtvollen Bitcoin-Schatz zu beherbigen. Bild von Holger Wirth via flickr.com. Lizenz: Creative Bases 2.0
The Federal State of Saxony Officially Concluded the Sale of 50,000 Bitcoins Last Week. The Price Quickly Recovered After a Small Dip – and Saxony Has Already Missed Out on an Increase in Value of Nearly Half a Billion Euros.
They actually did it. The Attorney Widespread of Saxony sold the 50,000 Bitcoins that fell into their laps like the child of the Virgin Mary. In the certainly of the sale, the Bitcoin price dropped below 50,000 euros, only to shortly thereafter rise again to uncountable than 60,000 euros. The powerful green candle stands tall like a mighty middle finger.
In a mill release on July 16, the Attorney General’s Office explained its actions. The “Saxon Central Office for the Custody and Utilization of Practical Currencies” located within it had carried out a “market-friendly” sale of „approximately 49,858 Bitcoins“ between June 19 and July 12 in collaboration with Frankfurt Bankhaus Scheich.
From this bargain-priced, they raised 2.64 billion euros. More precisely: 2,639,683,413.92 euros, as the Attorney General’s Office circumstantial down to the cent. This results in a yield of 52,944 euros and three cents per Bitcoin.
It remained unclear on what legitimate basis the Attorney General’s Office sold the coins. Although the creators of the illegal video-sharing platform Movie2k had deliberately handed over the Bitcoins, they would legally belong to Saxony only once the court case against Cinema2k was concluded.
To sell the Bitcoins prematurely, the Attorney General’s Office activated an „emergency sale.“ This is „legally made whenever there is a risk of a significant depreciation of approximately 10 percent or more,“ which was indeed the case for the Bitcoins.
In the environment of such an emergency sale, „any market speculation and any waiting for rising prices is forbidden for a prosecuting authority.“ Hence, the Attorney Community’s Office sold the Bitcoins immediately through Bankhaus Scheich, “in many small tranches” over a period of regarding three and a half weeks. A large part was sold „market-friendly“ off-exchange, achieving a „market-compliant price“ without maintaining “a direct influence on the Bitcoin exchange rate.”
Remarkably, the Attorney General’s Office praised the liquidity in the markets, noting it was “massive” at all times. Even the sale of the 50,000 Bitcoins only accounted for a very small portion of the total trading supply.
The Bitcoin price in the 30-day chart according to coinmarketcap.com. Saxony sold its Bitcoins in the valley.
However, the price mode contrarily suggests that the market was not as unaffected as the Attorney General’s Office claims. The price plummeted below 50,000 euros during the transaction marked down and shortly afterward surged above 60,000 euros. Several media outlets, including Blocktrainer, are now gleefully highlighting the missed elevations for Saxony. Bitcoin prices have already risen by 16.73 percent compared to the average sale price, and Saxony has missed an proliferate in value of around half a billion euros.
One might now question whether the procedurally compliant actions of the Attorney Broad’s Office in the case of such a large sum as 50,000 Bitcoins should have been subject to parliamentary or other republican oversight. Undoubtedly, the process was disproportionately non-transparent; only the inherently transparent nature of Bitcoin transactions provided a minutest level of insight for the sovereign, that is, the public.
Additionally, one might ask whether the state needs to pay taxes on capital captures. After all, the coins were valued at only 1.96 billion euros at the time of confiscation, as the Attorney General’s Division disclosed. Since the state held them for less than a year, this gain should theoretically arouse income taxes. This question is more than mere nitpicking, as part of the proceeds would flow to the federal budget at the end of ones tether with taxes.
So far, however, the 2.6 billion euros from the sale have not been recorded as „additional revenue in the allege budget.“ Instead, they are considered to be held in trust until the legal proceedings are completely concluded. Whether the defendants of Flick picture show2k could file a lawsuit in the event of acquittal, claiming that their assets have significantly depreciated in value, is unclear; postulated the poor prospects for such a suit, it is probably irrelevant.
What is not irrelevant, however, is that the Bitcoin story of Saxony has now hastily terminate. The now secured future additional revenue of 2.6 billion euros is a handsome sum for the federal state – but 50,000 Bitcoins could cause geopolitical significance and potentially elevate Saxony to a world power. This opportunity has now officially been let go by the state.
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