Finance

Bitcoin’s Hidden Treasure: How Untouched BTC from Movie2K Could Reshape Germany’s Crypto Strategy

45,000 Bitcoin, worth $5B, linked to Movie2K, untouched since 2019. Fuels debate on seized crypto management.

September 6, 2025, 3:24 PM

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Executive Summary

Arkham Intelligence identified an additional 45,000 Bitcoin, valued at nearly $5 billion, linked to the Movie2K piracy site, which has remained untouched since 2019.

German authorities previously liquidated nearly 50,000 BTC seized from Movie2K for $2.89 billion, a move criticized by crypto advocates for potentially missing out on significant profits at current market values.

The discovery and prior liquidation have intensified debate on whether governments should sell seized digital assets or treat them as sovereign reserves, with Germany’s central bank president expressing skepticism about Bitcoin’s suitability for state holdings.

The Story So Far

The debate surrounding the management of seized digital assets has intensified following German authorities’ recent liquidation of a large trove of Bitcoin from the Movie2K piracy site, with crypto advocates urging governments to consider holding such assets as sovereign reserves, a strategy strongly opposed by Germany’s central bank president who deems Bitcoin too volatile and speculative for state holdings.

Why This Matters

The discovery of an additional $5 billion in untouched Bitcoin linked to the Movie2K piracy site significantly escalates the debate surrounding governmental strategies for managing seized digital assets. This new trove, alongside Germany’s prior liquidation of similar funds at a much lower value, underscores the tension between immediate revenue generation and the potential for long-term value retention if these assets were held as sovereign reserves, despite official skepticism regarding Bitcoin’s suitability for national finances.

Who Thinks What?

Crypto advocates contend that governments, including Germany, should consider treating recovered Bitcoin as a sovereign reserve rather than liquidating it for immediate cash, arguing that Germany missed out on significant profits by selling earlier.

German authorities, through their prior actions of liquidating seized Bitcoin, demonstrate a preference for converting digital assets to fiat currency for immediate revenue, generating billions from the sale.

Germany’s central bank President, Joachim Nagel, dismisses Bitcoin as unsuitable for sovereign reserves due to its volatility, illiquidity, lack of transparency, and speculative bubble-like risks, comparing it to the Dutch Tulip Mania.

Blockchain analytics firm Arkham Intelligence has identified an additional 45,000 Bitcoin, valued at nearly $5 billion, linked to the Movie2K piracy site, which remains untouched since 2019. This discovery comes after German authorities recently liquidated a separate trove of nearly 50,000 BTC seized from the same site, sparking renewed debate about how governments should manage confiscated digital assets.

Untouched Bitcoin Trove Identified

On September 5, Arkham Intelligence reported that these 45,000 BTC are distributed across more than 100 wallets and have shown no activity for five years. The firm suggested that these dormant funds are likely still under the control of the Movie2K site’s original operators.

German authorities have not yet commented on whether they are aware of or intend to pursue these newly identified funds. The existence of this unaccounted-for cluster has intensified discussions surrounding governmental approaches to digital asset management.

Germany’s Prior Bitcoin Liquidation

Earlier this year, German authorities sold 49,858 BTC that had also been seized from the Movie2K piracy site. This liquidation was executed at an average price of $57,900 per Bitcoin, generating approximately €2.64 billion, or $2.89 billion.

However, crypto advocates have pointed out that the same amount of Bitcoin would be worth over $5 billion at current market levels. They argue that the German authorities potentially missed out on significant profits by hastily selling the assets.

Debate Over Sovereign Bitcoin Reserves

The situation has reignited calls for governments to reconsider their strategies for seized digital assets. Crypto advocates contend that Germany should explore treating recovered Bitcoin as part of a sovereign reserve, rather than liquidating it for one-off cash injections.

If Germany were to adopt such a strategy, holding these coins, it would rank among the largest state Bitcoin holders globally. According to data from Bitcoin Treasuries, this move would place Germany fifth, just behind Ukraine, in terms of state-held Bitcoin.

Official Skepticism Towards Bitcoin

Despite these arguments, Germany’s central bank President, Joachim Nagel, has previously dismissed Bitcoin as unsuitable for sovereign reserves. Nagel described the asset as volatile, illiquid, and lacking the transparency expected of state-level assets.

Furthermore, Nagel has drawn parallels between the flagship cryptocurrency and the historical Dutch Tulip Mania, cautioning that integrating Bitcoin into public finances could expose them to speculative bubble-like risks.

The identification of an additional $5 billion in Bitcoin linked to the Movie2K case underscores the ongoing complexities and debates surrounding government handling of seized digital assets. It highlights the tension between immediate liquidation for revenue and the potential for long-term value retention, against a backdrop of official skepticism regarding cryptocurrency’s role in national reserves.