Bitcoin Price Alert: German State Could Take Control of Another 57,000 BTC

A proposed court settlement in the movie2k case could enable the German state of Saxony to obtain access to an additional 57,000 bitcoin, according to local reporting by MDR. The development revives a supply-overhang narrative that traders largely believed had faded after Saxony’s 2024 bitcoin liquidation.

Background: movie2k trial and bitcoin proceeds

The case involves the former operators of the illegal streaming portal movie2k.to, who are currently on trial. The lead defendant, 42, faces charges including commercial money laundering, while a second defendant, 39, is accused of money laundering and tax evasion.

While copyright offenses tied to approximately 220,000 unauthorized works have become time-barred, the dispute over the bitcoin proceeds remains central to the proceedings.

After the main defendant’s arrest in 2023, authorities received 49,858 BTC. Those holdings were later sold in June and July 2024 for about €2.64 billion (approximately $3.112 billion).

What the judge outlined

MDR reported that the presiding judge outlined a possible agreement on Monday aimed at shortening proceedings rather than litigating each alleged money-laundering violation individually.

Under the outline described by MDR, the main defendant would confess and receive a prison sentence of one to one-and-a-half years, suspended on probation. The co-defendant would receive eight to 12 months, also suspended.

The key market-relevant element is the proposed confiscation and handover structure: Saxony would be able to lawfully keep the €2.64 billion sale proceeds from 2024, and the defendant would also provide access to an additional 57,000 BTC that prosecutors allege he still controls.

How prosecutors arrived at 57,000 BTC

The 57,000 BTC figure is based on prosecutors’ accounting of the defendant’s alleged holdings and transfers. Prosecutors have argued that the main defendant originally acquired 136,000 BTC using proceeds linked to advertising and subscription traps connected to the site.

After subtracting the nearly 50,000 BTC already transferred to authorities, additional amounts prosecutors say were sold, and 22,000 BTC and 5,000 BTC said to have been paid to associates, the state’s working assumption is that around 57,000 BTC remain.

Market impact and context for traders

For bitcoin traders, the significance lies less in an immediate transfer and more in the potential reappearance of state-controlled supply that could eventually be sold into the market. Saxony’s prior liquidation in 2024 was widely watched by market participants.

If the settlement progresses and the 57,000 BTC are ultimately reachable, the potential for renewed selling pressure would return to the market narrative.

Bitcoin price at press time

At press time, bitcoin traded at $74,320.