Germany handling seized digital assets is once again under the spotlight after blockchain analytics firm Arkham Intelligence revealed a new cluster of Bitcoin potentially linked to the infamous Movie2K piracy site. The discovery has reignited debate over how governments should manage confiscated cryptocurrencies in a fast-evolving market.
Arkham Identifies 45,000 Untouched BTC
On 5 September, Arkham Intelligence reported that approximately 45,000 BTC valued at nearly $5 billion at current market prices remains dormant across more than 100 wallets associated with the Movie2K case. These coins have shown no activity since 2019, suggesting they are still controlled by the site’s operators.
BREAKING: ARKHAM IDENTIFIES $5B BTC THAT THE GERMAN GOVERNMENT FAILED TO SEIZE
German police seized 49,858 BTC from the operators of Movie2K, a film piracy website, in early 2024. The government sold it in July 2024 for $2.89B at an average price of $57,900.
It appears that… pic.twitter.com/l0w0OkdU0H
— Arkham (@arkham) September 5, 2025
This revelation comes just months after Germany liquidated a significant portion of Bitcoin seized from Movie2K in 2024. Authorities offloaded 49,858 BTC at an average price of $57,900, generating around €2.64 billion ($2.89 billion). Today, that same trove would be worth over $5 billion, highlighting the scale of potential gains the state may have forfeited through early liquidation.
Missed Profits Spark Criticism
Crypto advocates have criticised the German government for what they view as a short-sighted liquidation strategy. Many argue that holding confiscated Bitcoin as part of a sovereign reserve could yield far greater benefits over time, particularly as the asset continues to gain institutional acceptance and demonstrates resilience in global markets.
Top 5 Bitcoin-Holding Governments Globally. Source: Bitcoin Treasuries
According to Bitcoin Treasuries data, had Germany retained its seized holdings, it would rank among the world’s top five state Bitcoin holders, just behind Ukraine. This positioning, some experts say, could provide both financial strength and geopolitical leverage in an increasingly digital economy.
However, officials appear reluctant to adopt such an approach. While Germany has shown openness towards fostering crypto innovation, policymakers remain divided over Bitcoin’s role in public finance.
Central Bank Pushes Back
Joachim Nagel, President of Germany’s central bank, has been particularly vocal in his opposition to Bitcoin as a sovereign asset. He has dismissed the cryptocurrency as volatile, illiquid and lacking the transparency required of state-level reserves.
Joachim Nagel, President of Germany’s central bank
Nagel has even likened Bitcoin to the Dutch Tulip Mania of the 17th century, cautioning that treating it as a reserve could expose Germany’s public finances to bubble-like risks. His scepticism underscores a broader challenge facing governments: balancing the opportunities of digital assets with their inherent risks and unpredictability.
Future of the Newly Discovered Coins
For now, German authorities have not commented on Arkham’s findings, nor have they confirmed whether they are pursuing the dormant funds. If reclaimed, the additional 45,000 BTC could place Germany firmly among the largest sovereign holders of digital assets.
Yet, the government’s cautious stance suggests that any future liquidation should these assets be recovered, would likely mirror its earlier strategy of selling rather than holding.
This ongoing debate highlights a critical question facing not only Germany but all governments: should seized digital assets be sold immediately for fiat gains, or held as part of a longer-term strategy in anticipation of Bitcoin’s continued growth?
As blockchain transparency makes it easier to trace dormant wallets, similar situations are likely to emerge worldwide, forcing policymakers to refine their playbooks. For now, Germany stands at the centre of this debate, with billions of dollars in Bitcoin hanging in the balance.
