German Saxony Police Seize $2.1 Billion In Bitcoin During Website Violations Investigation

Key Points:

• German Saxony police seize $2.1 billion worth of Bitcoins in the country’s largest-ever cryptocurrency bust.
• Two suspects linked to a piracy website voluntarily transferred 50,000 Bitcoins to official wallets amid money laundering investigations.

German Saxony police have provisionally seized nearly 50,000 Bitcoins valued at approximately $2.1 billion in what has been described as the country’s most extensive cryptocurrency seizure.

German Saxony Police Seize $2.1 Billion in Bitcoin, Setting A New Record

The move is part of an investigation into an alleged illegal file-sharing platform and copyright violations, conducted by the Dresden police with support from the Federal Criminal Police Office (BKA), the FBI, and a Munich-based forensic IT expert company.

The investigation targets two suspects who operated a German piracy website until 2013. The individuals voluntarily transferred the Bitcoins to official wallets provided by the BKA, following ongoing investigations into commercial money laundering.

The German Saxony police, in collaboration with tax authorities and prosecutors, coordinated efforts to secure the Bitcoins allegedly connected to two German and Polish nationals. The suspects are accused of purchasing the Bitcoins in 2013 with proceeds from pirated works through websites.

The seized amount is the largest ever secured by law enforcement in Germany, with the Federal Criminal Police Office and the US Federal Bureau of Investigation providing support. The suspects’ voluntary transfer of Bitcoins to German authorities raises questions about the cryptocurrency’s future disposition.

In comparison, the U.S. government had previously seized $216 million worth of Bitcoin in 2023, linked to the Silk Road dark net market that was shut down in 2013, currently holding $9.5 billion worth of Bitcoin, according to Arkham.

While the timeline of the Bitcoin acquisition remains unclear, the significant seizure suggests it may have occurred during a period of lower cryptocurrency prices. The development comes as Bitcoin is on track to achieve its fifth consecutive monthly gain.