rewrite this title Germany ‘Failed to Seize’ $5.6B Bitcoin Stash Held by Movie2K Piracy Website: Arkham – Decrypt

Arkham Intelligence has reported that piracy website Movie2K still holds 45,000 BTC, which the German government “failed to seize” as part of a confiscation of nearly 50,000 BTC in early 2024.

In a tweet, Arkham revealed that it had identified additional Bitcoin wallets likely belonging to Movie2K, which operated between 2008 and 2013.

According to the post, the data platform and exchange explained that it had “found another cluster of Bitcoin” connected to the original haul, with this new tranche of BTC currently worth $5 billion.

“We discovered a cluster of 45,000 Bitcoin that remained untouched from November 2013 until January 2019, when it was suddenly moved to new addresses,” said Arkham CEO Migeul Morel, speaking to Decrypt.

Morel added that the “activity pattern” of the new cluster matches “exactly” with the cluster of Bitcoin that was seized by German police last year, with the movements of both clusters “occurring within days” of each other.

“Additionally, both clusters share similar origins, having received their initial Bitcoin through the same defunct exchanges, Mt. Gox and AnxPro,” he said.

There are other similarities, according to Morel, such as the address types used and the quantities of Bitcoin stored in each address.

“Based on these parallel behaviors and shared characteristics, we have extremely high confidence that this cluster belongs to Movie2k or its operators,” he concluded.

Germany’s $5.62 billion Bitcoin fumble

The German government famously began selling off its original haul of Movie2K Bitcoin in June 2024, when it was worth just over $3 billion (€2.6 billion).

At the time, the Dresden prosecutor called the haul “unprecedented.” If it had waited until today to conduct the sales, the government would have brought in $5.62 billion in revenues.

Decrypt contacted the Federal Criminal Police Office (BKA) for comment, asking whether it was aware of the newly identified Bitcoin, and whether it intended to take relevant action.

A spokesperson for the agency told Decrypt that it “in principle does not comment on investigations.”

The original seizure of 49,858 BTC took place in January 2024, via a “voluntary transfer” from Movie2K’s operators.

Two men—one a Polish national and the other a German national—have been charged with counts of copyright infringement, money laundering and tax evasion in relation to the activities of Movie2K.

Both men have been able to secure suspended sentences, partly by virtue of providing confessions, and partly by providing information leading to the identification of additional suspects.