Arkham Intelligence has revealed that German authorities may have failed to seize approximately 45,000 Bitcoin (BTC), worth around $5 billion, linked to the defunct movie piracy site Movie2K. These funds, distributed across more than 100 wallets, have remained untouched since 2019, suggesting they are still under the control of the site's original operators.
This discovery comes after Germany's record-breaking seizure of 49,858 BTC from Movie2K operators in January 2024, which were sold between June and July 2024 for an average price of $57,900 per BTC, netting the government $2.8 billion. The sale was criticized as Bitcoin's price subsequently surged to nearly $124,000 by mid-August, meaning the sold coins would have been worth over $5 billion had they been held.
Seizing the newly identified stash presents significant legal and technical challenges. German prosecutors must first prove in court that these assets are proceeds of crime and directly tied to Movie2K. Additionally, gaining access to the private keys for over 100 wallets is a formidable obstacle that could take years, if achieved at all.
German law requires the quick liquidation of volatile assets like cryptocurrencies to mitigate financial risk, a policy that has sparked debate over missed profit opportunities. Some politicians, such as Joana Cotar, advocate for retaining seized Bitcoin as a strategic reserve, though the central bank remains skeptical due to Bitcoin's volatility.
