German authorities may have overlooked more than 45,000 Bitcoin allegedly linked to the defunct movie piracy site Movie2K, potentially missing out on an additional $5 billion in digital assets, according to a new report from crypto analytics firm Arkham.
Key Takeaways:
Arkham has identified over 45,000 BTC tied to Movie2K that remain untouched since 2019. The stash, worth nearly $5 billion, has not been acknowledged or seized by German authorities. Authorities must prove criminal ties and gain access to the wallets before any potential seizure can occur.On Friday, Arkham revealed that it had identified 45,060 BTC still sitting idle across over 100 wallets tied to Movie2K.
45,000 Bitcoin Linked to Movie2K Still Untouched Since 2019
The stash has not moved since 2019, and the platform believes the funds are still controlled by the site’s original operators.
“This is most likely still under the control of the Movie2K operators,” Arkham wrote. “It has not moved since 2019 and is split across more than 100 wallets.”
The revelation follows Germany’s record-breaking Bitcoin seizure in January 2024, when authorities confiscated 49,858 BTC after two suspects voluntarily handed over the funds during an investigation into Movie2K.
The coins were later sold between June and July for an average of $57,900 per BTC, netting the German government around $2.8 billion.
At the time, prosecutors defended the sale, citing German laws that require the quick liquidation of volatile assets to avoid potential losses of 10% or more.
However, just months after the sale, Bitcoin soared past $100,000, eventually peaking at $124,128 in mid-August.
By then, the government’s previously sold coins would have been worth over $5 billion, prompting criticism over the timing of the disposal.
Now, with BTC trading just under $111,000, Arkham’s findings suggest that another $4.99 billion in Bitcoin remains potentially tied to the same piracy case, but has yet to be seized.
Crucially, German authorities have not acknowledged the additional wallets identified by Arkham, and the coins were not included in last year’s official sales.
To seize the new trove, prosecutors would need to prove in court that the assets are proceeds of crime and directly tied to Movie2K.
Even then, enforcement hinges on identifying and gaining control of the wallets’ private keys, a challenge that could take years, if ever resolved.
Until then, the unclaimed $5 billion in Bitcoin remains frozen in place, untouched since the early days of crypto’s rise, and out of reach for German law enforcement.
Is Germany Still Interested in Crypto?
Although Germany has slipped from its rank as the fourth-largest government Bitcoin holder and missed the chance to earn an additional $3 billion, the country is actively supporting crypto adoption and regulation.
Following the approval of the Markets in Crypto Assets (MiCA) regulation, crypto assets have become legal in Germany.
Crypto users in Germany were projected to reach 27.32 million, with GenZ and millennials accounting for up to 50%.
Institutional adoption is also rising, with Deutsche Bank reportedly planning to launch a digital assets custody service in 2026.
Revenue from the German crypto market is expected to reach $2.5 billion in 2025 and about $2.9 billion by the end of 2026, with a compound annual growth rate (CAGR) of 16.33%.
Germany is also creating a favourable tax policy for long-term crypto holders.
Gains from crypto are tax-free if held for more than one year, while short-term gains (less than one year) are subject to progressive income tax of up to 45%.
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