Germany's Untapped $5B Bitcoin Trove: What's Next?
Germany's Unclaimed Bitcoin: A $5 Billion Opportunity?
Following Germany's liquidation of nearly 50,000 Bitcoin seized from the Movie2K piracy site earlier this year, blockchain analysts have uncovered a significant, previously unreported stash linked to the case. This discovery raises questions about Germany's strategy for managing seized cryptocurrency and its potential role as a major Bitcoin holder.
On September 5, Arkham Intelligence reported that approximately 45,000 BTC, connected to Movie2K, remain untouched in various wallets.
The Untouched Funds
The dormant coins, valued at nearly $5 billion, are distributed across more than 100 wallets and have remained inactive since 2019.
- Arkham suggests the funds are likely still controlled by the original Movie2K operators.
- German authorities have not commented on the new findings.
A Missed Opportunity?
The discovery has sparked debate about how governments should manage confiscated digital assets. Some crypto advocates argue that German authorities missed out on considerable profits by hastily selling the initially seized Bitcoin. The liquidation, at an average price of $57,900, generated €2.64 billion ($2.89 billion). At current market levels, that same amount of Bitcoin would be worth over $5 billion.
Germany as a Bitcoin Powerhouse?
Some experts believe that Germany should consider treating seized Bitcoin as part of a sovereign reserve. According to Bitcoin Treasuries data, holding the newly discovered amount of Bitcoin would place Germany fifth among governments worldwide for Bitcoin holdings, behind Ukraine.
Resistance from Central Bank
Despite potential benefits, Germany's central bank president, Joachim Nagel, has previously dismissed Bitcoin as unsuitable for sovereign reserves. He cited Bitcoin's volatility, illiquidity, and lack of transparency as key concerns. Nagel has even compared Bitcoin to the Dutch Tulip Mania, warning against the risks of incorporating such assets into public finances.