German Authorities May Have Missed $5 Billion in Bitcoin Linked to Movie2K

According to Cointelegraph, German authorities might have overlooked approximately 45,000 Bitcoin associated with the movie piracy site Movie2K, potentially leading to an additional $5 billion in Bitcoin that could be seized and sold. Crypto intelligence platform Arkham reported on Friday that it discovered over 45,000 Bitcoin (BTC) still residing in wallets linked to Movie2K, a sum nearly equivalent to the amount seized by Germany last year. In January 2024, German police confiscated nearly 50,000 BTC, which was sold later that year, just before the cryptocurrency's value nearly doubled. The decision to sell the Bitcoin at that time has been criticized, as Germany missed out on billions of dollars in potential gains. Prosecutors explained that local laws required them to sell volatile assets like cryptocurrencies quickly to mitigate the risk of loss. Arkham's findings indicate that the newly identified Bitcoin, totaling 45,060 BTC, is connected to previous Movie2K transactions and addresses. This Bitcoin has remained unmoved since 2019 and is distributed across more than 100 wallets. Arkham noted that German authorities had not acknowledged this Bitcoin, and it was not part of the sales conducted mid-last year. As of now, Bitcoin is trading just under $111,000, valuing the holdings at $4.99 billion, which would have been nearly $5.6 billion at Bitcoin’s peak of $124,128 in mid-August. In mid-2024, German prosecutors sold 49,858 Bitcoin at an average price of $57,900, generating approximately $2.8 billion. By mid-November, Bitcoin's price had surged past $90,000, reaching over $100,000 in December, which would have valued the sold Bitcoin at over $5 billion. The Bitcoin was initially seized in January 2024 after two men, under investigation for operating Movie2K, voluntarily transferred it to authorities, claiming they purchased Bitcoin with funds earned from the site. Authorities described the seizure as the most comprehensive by law enforcement in Germany. Prosecutors began selling the Bitcoin in batches across multiple exchanges in June, completing the sales by mid-July. They stated it was legally necessary to sell assets if there was a risk of losing at least 10% of their value. It remains uncertain how German authorities will respond to Arkham’s findings. To seize the newly identified Bitcoin, police must prove its connection to Movie2K. Local laws require authorities to demonstrate in court that the Bitcoin is of illicit origin before seizure is permitted. Even then, police must identify the controllers of the over 100 wallets reported by Arkham and transfer ownership before gaining control.