The recent discovery by Arkham Intelligence concerning 40,000 dormant Bitcoin linked to the notorious Movie2K piracy case is shaking up discussions around state asset management. These coins, going untouched since 2019, bring forth serious inquiries about the previous handling of piracy seizures by German officials.
Valued at nearly $5 billion at today’s prices, this situation raises critical issues regarding accountability and transparency within law enforcement operations.
Arkham’s Findings on Dormant Bitcoin Holdings
Arkham experts have identified that the dormant Bitcoins are spread across over 100 different wallets associated with the Movie2K website. Following the arrest of the site’s operators in 2019, German authorities reportedly seized approximately 49,858 Bitcoin in early 2024. However, a significant portion of these coins was sold off in mid-2024.
In stark contrast, the newly identified stash reflects no transactions since 2019, suggesting that these assets remain under the control of the original operators instead of being moved to state custody.
BREAKING: ARKHAM IDENTIFIES $5B BTC THAT THE GERMAN GOVERNMENT FAILED TO SEIZE
Authorities seized nearly 50,000 Bitcoin from Movie2K’s operators, selling them for $2.89 billion in 2024.
More at: pic.twitter.com/l0w0OkdU0H
— Arkham (@arkham) September 5, 2025
Analysis of Government Sales and Market Trends
The reported seizure of nearly 49,860 Bitcoin in January 2024 was liquidated at an average price of $57,900, generating around €2.64 billion (approximately $2.90 billion). This sale was defended by the government, which expressed concerns about potential decreases in value should the coins not be sold promptly.
However, with Bitcoin soaring to an all-time high above $123,000, this decision is increasingly viewed as a missed opportunity for substantial profit.
Legal and Technical Challenges Ahead
Uncovering these dormant wallets does not automatically enable state claims. Legal actions must be initiated to establish rightful ownership and obtain necessary court orders. Additionally, there are numerous technical hurdles, including issues like dormant private keys and cross-border complications, that could impede swift recovery.
Financial experts believe that while recovery may be achievable, it often involves protracted and complicated processes. An influx of previously dormant coins into the market could resemble the pressure faced during the mid-2024 sell-offs.
State Bitcoin Reserves: A Point of Contention
Joana Cotar, a supportive figure for Bitcoin in the German parliament, has publicly called for a reevaluation of current policies. She posits that retaining confiscated Bitcoin could have delivered significantly greater financial returns for the country.
Conversely, Bundesbank President Joachim Nagel has underscored the volatility associated with Bitcoin, likening its rapid price changes to Tulip Mania, known as one of history’s earliest speculative bubbles.
Internationally, different nations are taking varied approaches. For instance, reports indicate that El Salvador is proactively managing its Bitcoin holdings, safeguarding them against potential quantum computing threats while remaining transparent on the blockchain.
Image credits: Unsplash, Chart data from TradingView
