German authorities find themselves in the spotlight following revelations that they may have overlooked a staggering 45,000 Bitcoin tied to the notorious movie piracy site, Movie2K. This unclaimed cryptocurrency is currently valued at approximately $4.99 billion, highlighting a significant potential revenue opportunity that remains unrealized. The crypto intelligence platform Arkham reported on Friday that these Bitcoin holdings, which have not moved since 2019, are still under the control of the Movie2K operators and are dispersed across over 100 wallets.
The context for this situation dates back to January 2024, when German police seized nearly 50,000 Bitcoin from two individuals linked to Movie2K who voluntarily transferred the digital assets during an investigation. Authorities eventually sold this seized Bitcoin later that year, just months before the cryptocurrency’s value surged dramatically. Critics have since taken aim at the timing of the sales, highlighting the potential billions lost by selling when they did.
At the time, prosecutors explained that existing local laws mandated the rapid sale of volatile assets like cryptocurrencies to mitigate potential losses. In an ambitious strategy, German authorities sold 49,858 Bitcoin in June and July 2024 at an average price of $57,900, netting around $2.8 billion. Just months later, Bitcoin prices soared past $90,000, culminating in a rally that would have elevated the value of the earlier sales to over $5 billion had the authorities held onto the assets for longer.
Arkham’s findings shed new light on this issue, revealing that the undisclosed Bitcoin holdings correlate with previous Movie2K transactions and wallet addresses, yet German authorities have not mentioned this cache in any transactions. The platform’s analysis indicates that these funds remain dormant and have likely not been accessed since their original consolidation in 2019.
If German police wish to seize this newly uncovered Bitcoin, they face a significant legal hurdle. They must demonstrate, with evidence, that the cryptocurrency is of illicit origin and directly tied to Movie2K operations. The requirement to establish clear connections in court complicates their ability to take control of the Bitcoin, as identifying and proving ownership of the decentralized wallets holding the assets will likely prove challenging.
As the investigation continues, the fate of this substantial sum of Bitcoin—and the potential financial implications for German authorities—remains uncertain.
