Investigators have uncovered a massive stash of Bitcoin linked to a defunct movie piracy website, Movie2K. This discovery is raising serious questions about how German authorities handled a previous Bitcoin seizure.
A $5 Billion Oversight?
Blockchain analytics firm Arkham Intelligence found around 45,000 Bitcoin, worth roughly $5 billion today, sitting untouched in over 100 wallets since 2019. This is significant because German authorities seized almost 50,000 BTC from Movie2K operators in early 2024 and sold it off months later. The newly discovered Bitcoin, however, hasn’t moved, suggesting it wasn’t part of the initial seizure.
The Government’s Sale
The German government sold its 49,860 BTC in June and July 2024 for about $2.9 billion. They justified the sale by citing the risk of Bitcoin losing value. However, with Bitcoin’s price skyrocketing since then (passing $123,000 at one point), the sale now looks like a huge missed opportunity.
Challenges to Recovery
Getting this newly discovered Bitcoin back won’t be easy. Legal battles to prove ownership and secure court orders will be necessary. Plus, there are technical hurdles: lost keys, complicated ownership chains, and international legal issues could all significantly slow down or even prevent recovery. If this Bitcoin were suddenly sold, it could also significantly impact the market.
The Bitcoin Debate in Germany
The situation has sparked a debate in Germany about whether the government should hold confiscated Bitcoin as a reserve. One lawmaker, Joana Cotar, argues that holding onto the Bitcoin would have yielded much higher returns. However, the Bundesbank president, Joachim Nagel, warns about Bitcoin’s volatility, comparing it to historical financial bubbles. Other countries, like El Salvador, have taken different approaches to managing their Bitcoin holdings.