Arkham Intelligence has uncovered a significant Bitcoin (BTC) holding of 45,000 BTC—valued at approximately $4.99 billion—linked to the former Movie2K piracy site, which remains untouched by the German government. The cluster of 100 connected wallets has not been moved since 2019 and has not been seized or liquidated, despite the government having previously taken control of nearly 50,000 BTC from the same operation in early 2024. At that time, the government sold the seized BTC at an average price of $57,500, generating $2.89 billion in proceeds. The newly identified wallets represent a missed opportunity for the government to capture further value, as the price of BTC has more than doubled since the 2024 sales.

The BTC in question appears to still be under the control of the Movie2K operators or their successors, according to Arkham’s analysis of blockchain activity and wallet connections. The original site was active until 2013 and used BTC to launder and store illicit proceeds. Over time, the small, frequent inflows accumulated into a substantial treasury. The discovery of these additional wallets raises questions about their accessibility and whether they could be subject to legal claims or confiscation. However, as of July 2024, the case against Movie2K remains under investigation, with no clear legal pathway for the government to recover the assets. The two primary suspects—identified as a 40-year-old German male and a 37-year-old Polish male—received suspended sentences for copyright infringement and money laundering but have not been involved with the BTC holdings since.

The potential re-acquisition of these assets could pose a dilemma for German authorities, particularly with the country’s evolving stance on cryptocurrency. In late 2024, Germany introduced a more crypto-friendly government, and there have been discussions about creating a strategic BTC reserve. However, the Free Democratic Party (FDP)’s proposed reserve remains unregulated and speculative. If the government were to seize the 45,000 BTC, it would significantly increase its BTC holdings, potentially positioning Germany behind Ukraine as a major passive holder in the global crypto ecosystem. Such a move could also reintroduce Germany as an active participant in the BTC market—either as a buyer, seller, or long-term holder—depending on its policy decisions.

Market analysts are closely watching how the situation unfolds, as the German government’s past sales had a measurable impact on BTC prices. In June and July 2024, the market experienced bearish pressure due to the government’s BTC liquidation. Should the newly identified BTC be sold, similar market reactions could be expected. However, the market appears increasingly resilient to large-scale sales, having absorbed previous whale-level movements without long-term damage. This resilience could bolster confidence in BTC as a macroeconomic asset, particularly if governments begin to treat it more as a strategic reserve than a volatile speculative product.

The broader implications of this discovery extend beyond Germany’s domestic policy. Governments have historically been among the largest BTC holders, collectively holding over 525,364 BTC as of mid-2024. If more states begin to treat BTC as a strategic asset, it could shift market dynamics and influence long-term price trends. For now, the fate of the 45,000 BTC remains uncertain, but its potential movement or retention will likely shape the future of BTC policy and market sentiment in the region.

Source:

[1] Arkham Intelligence identified a cluster of 100 wallets … (https://www.mitrade.com/insights/news/live-news/article-3-1101097-20250906)

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