Bitcoin News Today: Germany’s $5B Bitcoin Oversight Exposes Flaws in Digital Asset Investigations

German authorities may have overlooked a significant portion of Bitcoin tied to the defunct movie piracy site Movie2K, according to data analysis from crypto intelligence firm Arkham. The firm identified over 45,060 Bitcoin (BTC)—valued at approximately $4.99 billion—remaining in over 100 wallets linked to the piracy site. This amount is nearly equal to the 49,858 BTC (worth about $2.8 billion at the time) seized and sold by German police in January 2024, according to Arkham. The newly identified Bitcoin had not moved since 2019, raising questions about whether German law enforcement completed a thorough investigation of the case.

The 49,858 BTC seized by German authorities was sold at an average price of $57,900 between June and July 2024. At the time, officials cited legal requirements to sell volatile assets quickly to prevent a potential 10% or more loss in value. However, the Bitcoin price surged in the following months, reaching an all-time high of $124,128 in mid-August 2025. This price increase means that the amount sold by German authorities could have fetched significantly more, potentially exceeding $5 billion had it been held.

The newly identified Bitcoin, if seized and liquidated now, would add a substantial amount to Germany’s digital asset reserves. Yet, any such move faces legal hurdles. German law requires authorities to prove in court that the Bitcoin is of illicit origin—specifically tied to Movie2K—before it can be seized. Additionally, the ownership of the 100+ wallets must be traced and transferred to the authorities, a process that could prove complex given the nature of Bitcoin’s decentralized technology.

The discovery has reignited debates about the optimal management of seized cryptocurrency by governments. Joana Cotar, a German lawmaker and Bitcoin advocate, has argued against the rapid sale of such assets, suggesting that holding onto Bitcoin could have yielded greater long-term financial returns. She has proposed that Germany consider adopting a sovereign Bitcoin reserve strategy, akin to those pursued by countries such as Ukraine and the United States. This would involve using confiscated assets to bolster state finances rather than treating them as disposable.

The potential market impact of additional sales is also a concern. Germany’s previous disposal of seized Bitcoin triggered short-term selling pressure in mid-2024, though the market absorbed the flow. If the newly identified 45,000 BTC were to be liquidated, analysts warn it could again create volatility, especially with Bitcoin’s price still fluctuating in the $110,000–$113,000 range as of late August 2025. The situation underscores the delicate balance between legal requirements, financial strategy, and market stability when dealing with seized digital assets.

For now, the future of the newly identified Bitcoin remains uncertain. Arkham’s findings suggest it remains under the control of the former Movie2K operators, despite years of inactivity. This raises broader questions about the completeness of digital asset investigations and the evolving challenges governments face in managing cryptocurrencies. As Bitcoin continues to grow in prominence, the case highlights the need for clearer guidelines on handling and preserving such assets in line with both legal and economic objectives.

Source:

[1] Germany Missed $5B Bitcoin in Piracy Case, Says Arkham (https://cointelegraph.com/news/germany-failed-seize-5b-bitcoin-piracy-site-movie2k-arkham)

[2] 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/)