Arkham Intelligence has flagged roughly 45,000 Bitcoin tied to the Movie2K piracy case that haven’t moved since 2019, a discovery that raises recent questions on what was missed when German authorities dealt with the sooner seizures.
At present costs, these cash are price almost $5 billion, placing renewed scrutiny on Berlin’s selections final yr.
Arkham Tracks Dormant Movie2K Holdings
In keeping with Arkham, the dormant stash sits throughout greater than 100 wallets linked to the defunct Movie2K website. Studies have disclosed that Movie2K operators had been arrested in 2019, and that German authorities recovered almost 49,858 BTC in January 2024.
These cash had been later bought off in June and July 2024. The newly recognized 45,000 BTC, nonetheless, confirmed no motion after 2019, suggesting management by the identical operators fairly than state custody.
BREAKING: ARKHAM IDENTIFIES $5B BTC THAT THE GERMAN GOVERNMENT FAILED TO SEIZE
German police seized 49,858 BTC from the operators of Movie2K, a movie piracy web site, in early 2024. The federal government bought it in July 2024 for $2.89B at a median value of $57,900.
It seems that… pic.twitter.com/l0w0OkdU0H
— Arkham (@arkham) September 5, 2025
Authorities Bought Earlier Holdings At Decrease Costs
Based mostly on reports, the January 2024 seizure — near 49,860 BTC — was liquidated at a median value of $57,900, producing about €2.64 billion, or roughly $2.90 billion.
Germany defended the transfer by warning of a potential “important lack of worth of round 10% or extra” if it held the cash longer.
Market costs have since climbed, and Bitcoin has reached an all-time excessive above $123,000, making the sooner sale look, in uncooked numbers, like a big missed upside.
Authorized And Technical Hurdles Stay
The brand new discovering doesn’t mechanically imply these wallets may be taken by the state. Authorized steps can be required to show possession and to safe court docket orders.
Technical challenges exist too: dormant keys, complicated custody chains, and cross-border hyperlinks can all sluggish or block enforcement.
Analysts say restoration is feasible in some instances, however it’s hardly ever fast or easy. If one other massive tranche of cash had been to be moved into markets, it may create stress just like what was seen after the mid-2024 disposals.
Debate Over State Bitcoin Reserves
Joana Cotar, a German lawmaker and Bitcoin supporter, wrote an open letter urging a rethink. She argued that holding confiscated Bitcoin as a sovereign reserve may have produced far bigger returns for the state.
On the identical time, Bundesbank President Joachim Nagel has warned that Bitcoin is unstable and in contrast its surge conduct to Tulip Mania – a monetary bubble that occurred within the Dutch Republic in the course of the early 1600s. It’s usually known as the primary recorded speculative bubble in historical past.
Different nations have taken totally different paths. Studies observe that El Salvador not too long ago shifted $678 million in Bitcoin into 14 wallets to protect in opposition to quantum dangers whereas maintaining the holdings seen on the blockchain.
Featured picture from Unsplash, chart from TradingView
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