Arkham Intelligence has identified 45,000 Bitcoin (BTC), valued at nearly $5 billion, that remains untouched and tied to the Movie2K piracy case. The revelation has reignited debate about Germany’s handling of seized digital assets and its broader stance on Bitcoin reserves.
Arkham Tracks Dormant Bitcoin Linked to Movie2K
Blockchain analytics firm Arkham disclosed that more than 45,000 BTC connected to the defunct Movie2K platform is still sitting idle across over 100 wallets. The firm noted that the particular Bitcoin has shown no movement since 2019, suggesting the funds remain under the control of the piracy site’s operators.
Movie2K, a film piracy hub active in 2013, saw its operators arrested in 2019, leading to the eventual surrender of nearly 50,000 BTC in early 2024 through what German authorities described as a “voluntary transfer.” The government later sold off those coins.
Arkham wrote on X that “about 45,000 BTC were additionally identified in Bitcoin wallets related to the illegal movie website Movie2K that had not moved since 2019”. The discovery casts fresh doubts on whether German law enforcement completed a full sweep of the illicit network’s holdings.
Germany Sold Earlier Seized Bitcoin at Lower Prices
In January 2024, German police seized nearly 49,858 BTC from the Movie2K operators. Those coins were sold in June and July 2024 at an average price of $57,900, generating approximately €2.64 billion ($2.89 billion) according to data from Arkham Intelligence.
At today’s market rates, that same trove would be valued at more than $5 billion, highlighting what many now see as a mistimed liquidation. Arkham underlined that the government’s statement “made no mention of this additional BTC, and it was not included in the emergency sale.”
Germany justified the sale at the time by citing the risk of a “significant loss of value of around ten percent or more.” Meanwhile, Bitcoin has since hit a new all-time high (ATH) above $123,000, underscoring how dormant holdings like Germany’s could have multiplied significantly in value if properly managed
Critics Push for Sovereign Reserves
The news has reignited debate over how governments should handle seized Bitcoin. German Lawmaker and Bitcoin advocate Joana Cotar, via an open letter, warned against selling off the Bitcoin and argued that Germany could have secured far greater returns by holding onto its Movie2K assets rather than liquidating them at what now looks like a discount.
In an interview, Joana publicly endorsed Bitcoin as a legal tender. She suggested that Berlin adopt a sovereign Bitcoin reserve strategy, utilizing confiscated holdings to bolster state finances rather than treating them as disposable assets. Such a move would place Germany among the world’s top government Bitcoin holders, alongside Ukraine and the United States.
Earlier this year, Bundesbank President Joachim Nagel reiterated his view that Bitcoin is volatile and unsuitable for national reserves, comparing it to the Tulip Mania of the 1600s. His remarks highlight Germany’s reluctance to align with countries such as El Salvador, which actively integrate Bitcoin into its financial strategy.
El Salvador recently shifted its $678 million Bitcoin reserve into 14 wallets to defend against quantum threats, a move that security experts praised for boosting resilience while preserving transparency.
What’s Next For The Identified BTC
The newly uncovered 45,000 BTC raises questions about whether German authorities can, or will, seize the funds. Arkham’s findings suggest the wallets remain under the control of the Movie2K operators, though they have been inactive for years. Legal and technical hurdles may complicate any future attempt at seizure.
The potential recovery of such a large stash could also impact the Bitcoin market. Germany’s previous disposals triggered noticeable selling pressure in mid-2024, though the market eventually absorbed the flows. Analysts warn that any attempt to liquidate another 45,000 BTC could spark similar volatility.
For now, the fate of the dormant wallets remains unresolved. The discovery has sharpened the spotlight on how governments manage seized digital assets and whether Europe’s largest economy will revisit its approach as Bitcoin grows in global prominence.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
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