TLDR
- Arkham found 45,000 BTC linked to Movie2K still untouched since 2019.
- Germany sold 49,858 seized BTC in 2024 for $2.89B at $57,900 each.
- The unsold 45,000 BTC is now worth nearly $5 billion at current prices.
- The wallets holding the BTC remain inactive and under original operator control.
A new report from blockchain analytics firm Arkham Intelligence has revealed that 45,000 Bitcoin, worth nearly $5 billion, remains untouched in wallets linked to the defunct piracy platform Movie2K. These coins have shown no movement since 2019 and were not included in Germany’s earlier seizures or sales, raising questions about the full extent of asset recovery in the Movie2K case.
45,000 Dormant Bitcoins Still Tied to Movie2K Network
Arkham Intelligence reported that more than 45,000 BTC, linked to the illegal streaming site Movie2K, are still sitting in over 100 wallets. These wallets have remained inactive for more than six years and are believed to still be controlled by the original operators of the platform.
In 2019, German police arrested two key suspects behind Movie2K. During the investigation, authorities secured a voluntary handover of nearly 50,000 BTC in early 2024. However, Arkham’s new analysis suggests that a large portion of the platform’s cryptocurrency holdings were not recovered or included in official seizure reports.
The Movie2K platform, active around 2013, was a major hub for pirated films in Europe. The newly uncovered BTC is assumed to be part of the platform’s original revenue. Despite the government’s claims of a complete seizure earlier this year, Arkham stated on social media that “about 45,000 BTC were additionally identified in Bitcoin wallets related to the illegal movie website Movie2K that had not moved since 2019.”
The silence of these wallets since 2019 indicates that the funds are either lost, inaccessible, or being deliberately preserved by the original holders. Legal experts suggest recovering them could be difficult due to the lack of access and existing ownership protections.
Germany Sold Earlier Seized Bitcoin Below Current Market Value
In January 2024, German police seized close to 49,858 BTC from the Movie2K suspects. These assets were liquidated in June and July 2024 at an average price of $57,900 per coin. According to Arkham, the sale generated about €2.64 billion ($2.89 billion).
At today’s market price, those same coins would be worth over $6 billion. The decision to sell early has drawn scrutiny from both economists and political figures, some of whom argue that holding the Bitcoin could have been more beneficial for public finances.
Germany defended the sale, citing market volatility and the risk of a 10% or more price drop. Still, Bitcoin later surged to a new all-time high of over $123,000. This price increase has added pressure on the government’s asset management strategy, especially as more countries begin to consider digital assets as part of their reserve holdings.
Arkham confirmed that the newly found wallets were not part of the earlier asset liquidation. These coins were also not mentioned in official announcements during the government’s emergency sale of seized crypto in mid-2024.
Debate Grows Over Bitcoin Reserve Strategy and Future Seizures
The discovery has renewed discussion among German lawmakers about how the country handles digital assets. Joana Cotar, a member of the Bundestag, has openly criticized the government’s decision to sell the earlier seized BTC. In a public letter, she said the coins should have been added to Germany’s reserves.
Cotar also called for Berlin to follow countries like the U.S. and Ukraine, which hold large amounts of Bitcoin. She supports creating a state-level Bitcoin reserve strategy using assets gained through seizures. However, Germany’s central bank has not shown support for such an idea.
Earlier this year, Bundesbank President Joachim Nagel called Bitcoin too volatile and compared it to historic financial bubbles. His view reflects Germany’s cautious approach to using cryptocurrency in national financial planning.
As for the newly discovered 45,000 BTC, it remains unclear whether the government will pursue legal action to seize the funds. Experts say tracing ownership may not be enough to gain control, especially if the private keys remain with unknown individuals. If the coins are ever moved or sold, it could again affect the broader Bitcoin market.
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