Bitcoin News Today:

Blockchain analytics firm Arkham Intelligence has identified approximately 45,000 Bitcoin (BTC), valued at nearly $5 billion, that remains dormant and linked to the Movie2K piracy case. The discovery raises questions about whether German law enforcement fully secured the assets associated with the illegal streaming platform. According to Arkham, the Bitcoin is distributed across over 100 wallets and has not shown any movement since 2019, suggesting that it remains under the control of the site’s operators [1].

The Movie2K case, which involved a film piracy operation active in 2013, saw its operators arrested in 2019. In early 2024, nearly 50,000 BTC were voluntarily surrendered to German authorities, with the government later selling those coins in June and July 2024 at an average price of $57,900. This sale generated approximately €2.64 billion ($2.89 billion) at the time [2]. However, with Bitcoin reaching an all-time high of over $123,000, the value of the same 50,000 BTC would have exceeded $6 billion, highlighting what many see as a potential mistimed liquidation [3].

The newly uncovered 45,000 BTC further underscores concerns about how governments manage seized digital assets. Critics argue that holding rather than selling the Bitcoin could have generated greater returns for public coffers. German lawmaker and Bitcoin advocate Joana Cotar has publicly called for the adoption of a sovereign Bitcoin reserve strategy, suggesting that confiscated digital assets should be treated as long-term investments rather than disposable assets [4]. Such a move, she argues, would position Germany among the leading nations in government Bitcoin holdings, alongside the United States and Ukraine [5].

However, Germany’s central bank has remained skeptical. Bundesbank President Joachim Nagel has repeatedly expressed concerns about Bitcoin’s volatility, comparing it to historical speculative bubbles like the 17th-century Tulip Mania. This stance reflects broader hesitation within German policymaking circles to embrace digital assets as a legitimate part of national financial strategy [6].

The potential impact of the identified 45,000 BTC on the Bitcoin market has also sparked discussion. If the German government were to seize and sell the remaining Bitcoin, it could trigger renewed bearish sentiment. Previous sales by Germany in 2024 already caused noticeable market volatility, and analysts warn that a similar large-scale disposal could exacerbate selling pressure [7]. Conversely, if the government chooses to retain the Bitcoin, it could contribute to a more bullish market narrative, reinforcing the perception of Bitcoin as a strategic asset.

The discovery of this untouched Bitcoin also highlights the challenges governments face in identifying and recovering digital assets linked to illicit activities. Legal and technical obstacles may complicate any future attempts to access the identified wallets. For now, the fate of the 45,000 BTC remains uncertain, leaving the broader question of how governments should approach seized digital assets open for debate [1].

Source:

[1] Arkham Uncovers $5 Billion in Untouched Bitcoin From Germany’s Movie2K Seizure (https://coingape.com/arkham-uncovers-5-billion-in-untouched-bitcoin-from-germanys-movie2k-seizure/)

[2] Arkham Identifies $5B in BTC Not Seized by the German Government From Movie2K (https://coinpedia.org/news/arkham-identifies-5b-in-btc-not-seized-by-the-german-government-from-movie2k/)