A new report from blockchain intelligence firm Arkham has raised questions about the handling of a massive Bitcoin stash linked to the shuttered piracy site, Movie2K. The firm claims that over 45,000 Bitcoins worth nearly $5 billion remain untouched in wallets allegedly controlled by the site’s operators. This follows German authorities’ previous seizure of around 50,000 BTC from individuals tied to Movie2K earlier this year. However, this newly identified stash was discovered after a major Bitcoin surge in late 2023 and early 2024, prompting speculation about potential missed opportunities for further seizures.
Arkham’s findings suggest that the story is far from over. The firm notes that its analysis traced 45,060 Bitcoin across more than 100 wallets connected to Movie2K’s operations. These funds have been dormant since 2019 and were not included in the previous seizure by German authorities. If confirmed, this discovery raises significant legal and logistical hurdles for authorities seeking to seize these funds.
Authorities would need to demonstrate a direct link between the Bitcoin and Movie2K’s illicit activities in court to justify seizing the funds. Even then, investigators face challenges accessing the wallets until they can identify their controllers and secure cooperation similar to the initial seizure.
The implications of this new discovery are significant. The potential financial windfall underscores the complex legal issues involved in managing Bitcoin during criminal investigations.