2.6 billion euros in Bitcoin: Saxony's biggest financial thriller in court

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As reported by MDR, a challenging trial has begun in Leipzig. It concerns the former streaming portal "movie2k" – and a huge treasure trove of Bitcoin. Around 2.64 billion euros are currently frozen. The central question is: Can Saxony keep the money – or will the defendants get it back in the end?

From a pirated software portal to a billion-dollar fortune

"movie2k" was once one of the largest illegal streaming portals in the German-speaking world. Hundreds of thousands of films and series were offered there free of charge—without the permission of the rights holders. The platform was shut down in 2013.

Now the alleged head of the project and a financial expert are standing trial. The charges: money laundering in 146 cases, serious tax evasion, and other offenses. The original hundreds of thousands of copyright infringements are hardly relevant in criminal terms—they are considered time-barred.

Something else is crucial: What happened to the revenue?

136,000 bitcoins – and many unanswered questions

According to the indictment, the main defendant is alleged to have invested a significant portion of the profits in Bitcoin at an early stage. "He acquired a total of 136,000 Bitcoins," the indictment states. After his arrest in 2023, he handed over around 50,000 Bitcoins to investigators.

Tens of thousands more units are believed to still exist. At today's price, we are talking about billions. In addition, the defendant is said to have earned at least €125 million from sales abroad over the years.

The problem: part of the assets are secured, while another part has apparently disappeared. It is unclear where exactly all of the assets are located.

Who owns the Bitcoin treasure?

The confiscated €2.64 billion is currently held by the Bundesbank—frozen like a huge deposit. Only when the court decides whether the money is the proceeds of crime and can be lawfully confiscated will anything happen.

If confiscation is confirmed, the Free State of Saxony could benefit. However, potential claims by injured parties must first be examined. Only once these have been satisfied would any remaining amount be transferred to the state budget.

If the court does not find the allegations proven, the billions would have to be returned to the defendants. This is a scenario that would be politically difficult to justify.

More than a criminal trial

The case shows how much digital transactions and cryptocurrencies challenge the justice system. Values can be transferred in seconds, across national borders. At the same time, enormous sums of money are involved that could change public budgets.

Nine days of hearings have been scheduled initially. But one thing is already clear: the proceedings will send a strong signal.

Our critical assessment

Two worlds collide here: the digital shadow economy and government access. Billions that are said to originate from an illegal business model could now fill public coffers. It almost seems like a lottery win for the state. However, it is crucial that the impression is not created that the tax authorities ultimately benefit more from crime than the actual victims. Justice must not be a business model—neither for platform operators nor for the state.

Source: mdr.de