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German authorities may have overlooked more than 45,000 Bitcoin tied to the movie piracy site Movie2K, according to new research by crypto intelligence platform Arkham. The discovery suggests that an additional $5 billion worth of Movie2K bitcoin could still be seized, months after Germany sold nearly 50,000 BTC obtained from the same case.
Arkham said on Friday that it identified 45,060 BTC “still remaining in wallets belonging to Movie2K.” The stash is spread across more than 100 wallets and has not moved since 2019, raising questions over whether law enforcement missed part of the holdings during last year’s high-profile seizure.
“This is most likely still under the control of the Movie2K operators,” Arkham stated. “It has not been included in any of the government’s prior sales.”
In January 2024, German police seized 49,858 Bitcoin after two men suspected of operating Movie2K voluntarily transferred funds to authorities. Prosecutors described it as the most comprehensive crypto seizure in the country’s history.
By mid-year, prosecutors sold the Movie2K bitcoin in batches across multiple exchanges, netting around $2.8 billion at an average price of $57,900 per coin. Officials defended the decision, citing laws requiring volatile assets like cryptocurrencies to be sold quickly if there is a risk of losing 10% of their value.
“German law compels us to limit the state’s exposure to volatile digital assets,” — Prosecutor’s Office, Saxony, in a July 2024 statement.
However, the timing drew criticism. Just months later, Bitcoin surged past $100,000, with the holdings once worth over $5 billion. Critics argued that Germany sold too early, effectively forfeiting billions in potential gains from the Movie2K bitcoin case.
Arkham’s report suggests that German authorities may not have accounted for all the illicit funds linked to Movie2K. The platform noted that the 45,060 BTC it traced is connected to earlier Movie2K bitcoin movements and addresses but has never been publicly acknowledged by law enforcement.
At current prices, the uncovered stash is worth around $4.99 billion, nearly matching the size of last year’s seizure. At Bitcoin’s August peak of $124,000, the total would have been valued at $5.6 billion.
Crypto experts say this discovery could reshape how authorities pursue blockchain-based crime.
“If Arkham’s analysis is correct, Germany may have left billions of dollars in Movie2K bitcoin untouched,” said Thomas Krüger, a Berlin-based blockchain researcher. “The challenge will be proving ownership and illicit origin in court.”
Even if prosecutors pursue the new holdings, success is not guaranteed. Under German law, police must prove that the Movie2K bitcoin is tied to illicit activity before they can seize it. That will require establishing a direct link between the wallets and the defunct piracy site in court.
Ownership also presents a barrier. Authorities cannot control the funds without locating the individuals or entities holding the private keys to the more than 100 wallets identified. Until then, the Movie2K bitcoin remains beyond government reach, even if its illicit origins are established.
Legal experts caution that this could take years.
“Tracing is not the same as seizing,” said Katharina Vogel, a Frankfurt-based attorney specializing in digital assets. “The government must demonstrate that these specific wallets are connected to criminal activity and that is a higher legal threshold than many realize.”
The Movie2K bitcoin case illustrates the complexities governments face in managing digital asset seizures. While blockchain offers transparency in tracking transactions, actual enforcement depends on legal frameworks, custody of private keys, and market timing.
Germany’s rapid liquidation policy, designed to limit volatility risks, also raises strategic questions. Some argue it protects public funds, while others say it undermines the potential benefits of holding digital assets in treasury reserves.
For crypto investors, the case underscores the growing role of state actors in Bitcoin markets. With billions in Movie2K bitcoin possibly still circulating, any future seizure or liquidation by German authorities could influence supply dynamics and investor sentiment.
