The German government has been accused of "missing" the $5 billion Bitcoin connection in the Movie2K piracy case, having previously missed gains of 50,000 BTC, which has raised further questions.

On-chain analysis company Arkham Intelligence recently disclosed that 45,000 Bitcoins related to the Movie2K piracy case, worth approximately $5 billion, have remained untouched since 2019 and have not been seized by German authorities. This revelation has led to criticism of Germany's previous sale of nearly 50,000 Bitcoins at a low price, with lawmakers pointing out that the government missed out on potential revenue in the billions of dollars. It has also reignited fierce domestic debate in Germany over whether Bitcoin should be considered as a national reserve.

On-chain tracking reveals 5 billion dollars in Bitcoin, German police may have previously overlooked.

According to Arkham's analysis, these 45,000 Bitcoins are spread across more than 100 wallets and have not moved since 2019. This batch of assets is separate from the 49,858 BTC seized and sold by German police in early 2024. German authorities had previously claimed to have fully confiscated the Bitcoins associated with Movie2K, but Arkham's findings indicate that a significant amount of Bitcoin remains under the control of the former operators of that piracy site.

The long-term idleness of these wallets has raised new legal and technical issues, and authorities may face new challenges in recovering these unused assets. The government has remained silent on this in official reports, also implying that these Bitcoins may still be beyond the government's control.

Controversy Arises Over Selling Timing, Missing Out on Potential Billions in Profits

German authorities sold 49,858 BTC, previously confiscated, in June and July 2024 at an average price of $57,900, totaling approximately $2.89 billion. However, since the sale, the price of Bitcoin has soared to a historic high of over $123,000. Had the German government held onto this asset until now, its value would exceed $5 billion, nearly doubling the profit.

German MP Joana Cotar publicly criticized the government's short-term actions, stating that "Germany could have achieved greater returns by holding Bitcoin." She urged the government to consider establishing a sovereign Bitcoin reserve, which would position Germany among the global Bitcoin-holding nations.

Divergence in German Leadership's Strategy on Holding Bitcoin

Joana Cotar actively advocates for the legalization of Bitcoin and its inclusion in Germany's national fiscal strategy. She believes that holding seized Bitcoins can bring future economic advantages to the country. Her stance is in stark contrast to that of the President of the German Central Bank, Joachim Nagel.

Nagel has repeatedly warned about the risks of Bitcoin, stating that its volatility is too high to be suitable as a national reserve. He even compared Bitcoin to the 17th-century tulip mania bubble. His views reflect the general resistance in Germany towards integrating Bitcoin into official policy.

Meanwhile, other countries like El Salvador have incorporated Bitcoin into their national reserves. This debate on how to handle digital assets continues in Germany and has become a typical case of how governments around the world are responding to the wave of digital assets.

Conclusion

The missing Bitcoin in the Movie2K case has brought the controversy surrounding the German government's management of crypto assets to the forefront. This incident is not just about a billion-dollar asset; it more profoundly reflects the fundamental choices faced by governments around the world when dealing with emerging digital assets like Bitcoin. Should they regard it as a dangerous asset that needs to be quickly liquidated, or view it as a strategic reserve with long-term appreciation potential?

This event highlights the differences among countries in handling cryptocurrency assets in the absence of unified guidelines. As Bitcoin's influence in global finance continues to grow, this debate in Germany will undoubtedly provide an important reference sample for other countries.