Headline: Proposed Plea Deal in Movie2k Case Could Put Another ~57,000 BTC Back Under State Control — Market Overhang Returns
A tentative courtroom proposal in the long-running movie2k prosecution has resurrected a familiar crypto worry: the possibility that German authorities could gain control of tens of thousands of bitcoins and eventually sell them on the open market. Local outlet MDR reported this week that the presiding judge sketched a deal that would allow the state of Saxony to keep the roughly €2.64 billion ($3.11 billion) it realized from last year’s Bitcoin sale — and potentially obtain access to an additional ~57,000 BTC allegedly still connected to the main defendant.
Case background
- The trial targets former operators of the illegal streaming portal movie2k.to. The lead defendant, 42, faces charges that include commercial money laundering; a co-defendant, 39, is charged with money laundering and tax evasion. The underlying copyright offenses — tied to some 220,000 unauthorized works — are now time-barred.
- After the lead defendant’s 2023 arrest, authorities seized 49,858 BTC, which were sold in June–July 2024 for about €2.64 billion.
- Prosecutors say the lead defendant originally accumulated roughly 136,000 BTC via advertising and subscription schemes linked to the site. After accounting for the seized ~49,858 BTC, coins allegedly sold, and payments to associates (22,000 BTC and 5,000 BTC cited by prosecutors), they estimate ~57,000 BTC remain within reach.
What the proposed deal would do
According to MDR, the judge proposed a settlement designed to speed up the proceedings rather than litigate every alleged money-laundering violation. Under that outline:
- The lead defendant would plead guilty and receive a 12–18 month prison term suspended on probation.
- The co-defendant would receive an 8–12 month suspended sentence.
- Crucially for markets, Saxony would retain the €2.64 billion already raised and the defendant would surrender access to the additional ~57,000 BTC prosecutors believe remain under his control.
Legal hinge and defense pushback
The central legal question is whether criminal forfeiture can reach proceeds from copyright violations that are themselves time-barred. As court spokesperson Katrin Seidel summed up for MDR: the copyright offenses can’t be prosecuted anymore, “but the money generated from those acts can still potentially be stripped away as criminal proceeds.” That forfeiture argument is the core issue the parties are contesting.
Defense attorneys have strongly disputed the prosecution’s framing, calling the indictment “economically driven” and arguing the case looks primarily aimed at seizing Bitcoin wealth. The proposed deal is not final; the defense has criticized its premise and it’s unclear whether the lead defendant would accept any arrangement that includes transferring access to additional coins.
Market implications
For traders, the immediate concern isn’t an imminent sale but the reappearance of state-controlled supply as a tail risk. Saxony’s 2024 liquidation — when nearly 50k BTC were sold — was a highly watched price event. If the proposed settlement advances and the state can lawfully obtain access to the estimated 57,000 BTC (roughly $4.2 billion at current prices), that overhang could weigh on sentiment and remain a potential source of downward pressure if the coins ultimately enter the market.
At press time, Bitcoin traded at $74,320.
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