Catenaa, Friday, October 10, 2025-Germany missed out on roughly $3.57 billion in unrealized gains after liquidating 50,000 Bitcoin (BTC) seized from piracy website operators before the cryptocurrency soared past $125,000.
The Federal Criminal Police Office sold the coins by mid-2024 for an average of $57,900 each, netting about $2.89 billion, while the same holdings would now be valued at $6.25 billion.
The decision followed German law, which requires rapid disposal of volatile seized assets to limit price risk. Critics, including Bundestag member Joana Cotar, argued that the sale was shortsighted and urged the government to consider retaining BTC as a strategic reserve.
By contrast, the US holds nearly 200,000 BTC valued at over $24 billion, maintaining a patient approach with a newly launched Strategic Bitcoin Reserve.
Despite the misstep, Germany continues advancing its digital asset framework. Crypto is fully legal under the EU’s MiCA regulation, with oversight by BaFin.
Deutsche Bank plans to offer custody services by 2026, while new tax rules will require disclosure of crypto transactions under DAC 8. Long-term holdings remain tax-free if held over a year, reflecting government support for adoption, especially among Gen Z and millennials.
Further analysis by crypto analytics firm Arkham identified more than 45,000 BTC tied to Movie2K operators still dormant since 2019, worth nearly $5 billion, suggesting Germany may have overlooked additional assets during earlier seizures.
