A string of ghost wallets haunts Germany.
German authorities claimed a major victory in January 2024 after seizing nearly 50,000 Bitcoin from Movie2K, the notorious film piracy site. But fresh analysis shows they may have celebrated too soon: another 45,860 BTC — worth over $5 billion — was never seized, quietly sitting untouched on the blockchain since 2019.
ChainStreet Brief
- Half the Haul: German police seized 50,000 BTC but overlooked another 45,860 BTC linked to Movie2K.
- Costly Sale: The government sold its seized stash for $2.89B; today it would be worth more than $5B.
- Sleeping Giant: The missed Bitcoin remains spread across 100+ wallets, dormant for five years.
The Seizure That Wasn’t
The German Federal Criminal Police Office (BKA) thought it had wrapped up the Movie2K case in early 2024. After the site’s operators were arrested in 2019, investigators secured a “voluntary transfer” of nearly 50,000 BTC.
It was one of the largest Bitcoin seizures in history. But Arkham Intelligence later found another cluster of wallets tied to the piracy empire. “It appears that over 45,000 BTC, almost as much as the amount seized and currently worth $5B, still remains in wallets belonging to Movie2K,” Arkham reported.
The government’s statements confirm they only ever controlled the first batch, leaving a nearly equal fortune untouched.
A Premature Payday
What Berlin did seize, it didn’t hold for long. Citing fears of volatility, the BKA quickly liquidated its Bitcoin.
Between June and July 2024, the state sold all 49,858 BTC, netting €2.64 billion ($2.89 billion) at an average price of ~$57,900 per coin. Officials justified the rapid disposal by citing “a risk of a significant loss of value of around ten percent or more.”
The sale now looks shortsighted. At today’s prices, that stash would be worth over $5 billion. Germany not only missed the hidden wallets but also undersold the coins it did manage to secure.
The Ghost Wallets of Movie2K
Arkham’s analysis shows the overlooked funds remain in more than 100 wallets, untouched since 2019. “This is most likely still under the control of the Movie2K operators. It has not moved since 2019, and is split across over 100 Bitcoin wallets,” Arkham noted.
Without private keys, German authorities can’t access the coins. They can see them on the blockchain but have no way to force their transfer. That leaves a massive, dormant stash — a sleeping giant with the potential to jolt markets if it ever moves.
ChainStreet’s Take
Germany’s fumble shows the gulf between law enforcement and the realities of digital assets. They grabbed the cash on the table but never checked for the safe in the wall.
The failure went beyond selling too early. It was a deeper lapse: an inability to map the full scope of a criminal treasury, rooted in a lack of native crypto expertise. As long as that skills gap persists, ghost wallets like Movie2K’s will slip through official nets.
For markets, the danger is clear. A dormant $5 billion Bitcoin fortune looms as a wild card, controlled by unknown hands. If those coins surface, the impact on liquidity and sentiment could be immediate.
The blockchain never forgets. Germany’s oversight leaves one of the largest ghost fortunes in crypto history still haunting it.
