The German Federal Criminal Police Office (BKA) has sold more than $195 million worth of Bitcoin seized from a pirated movie website, marking a significant move in its largest-ever cryptocurrency seizure. The Bitcoins, which were originally confiscated from Movie2k.to, a film piracy website active in 2013, represent a fraction of the total amount seized.
Details of the Bitcoin Seizure
In January 2024, the BKA began liquidating the seized Bitcoins, and recent reports indicate the government still holds a substantial balance of $3.05 billion in Bitcoin. Crypto journalist Laura Shin highlighted the BKA’s significant Bitcoin sell-off in a recent post on social media platform X. According to her, the BKA started selling Bitcoin on June 19, transferring $600 million worth of BTC. Of that amount, $130 million was sent to exchanges like Kraken and Bitstamp. The next day, another $65 million worth of Bitcoins were moved to Coinbase.
Origin of the Seized Bitcoins
In February 2024, Arkham Intelligence reported that German authorities had seized 50,000 Bitcoins, valued at approximately $2.12 billion at the time. These Bitcoins were confiscated from Movie2k.to, which operated in 2013. The website operators reportedly used profits from advertising fees and subscription revenues to make large-scale BTC purchases. One of the operators voluntarily transferred 50,000 Bitcoins to the BKA’s wallet. At the time, it was unclear whether the government would sell the seized Bitcoins.
Impact on Bitcoin Market
As the BKA continues to sell the remaining Bitcoin, the market could see significant impacts. Crypto analyst Daan Crypto Trades observed a notable drop in Bitcoin’s value coinciding with the government’s Bitcoin transfers. When the BKA moved $425 million out of the total $3 billion+, Bitcoin’s value dropped by $500. At press time, Bitcoin was trading at $64,713, with a daily dip of 0.63% and a weekly decrease of 2.94%.
Also Read: Bitpanda Partners with Deutsche Bank for Fiat Transactions in Germany
Future Implications
The German government’s ongoing sale of the seized Bitcoin represents both a challenge and an opportunity for large players in the cryptocurrency industry. While the liquidation of such a substantial amount of Bitcoin can influence market prices, it also presents a unique buying opportunity for institutional investors and other significant market participants.
The German government’s sale of over $195 million in seized Bitcoin is a landmark event in the cryptocurrency space. As the BKA continues to liquidate its holdings, the market will closely watch the effects on Bitcoin’s value and the broader implications for cryptocurrency seizures and sales by government authorities.
