What happened: Germany sold 50,000 BTC seized from the Movie2K case well before Bitcoin’s massive price rally.
In 2024 the BKA liquidated nearly the entire 50,000 BTC holding for about $2.89 billion, averaging roughly $57,900 per coin. A year later Bitcoin topped $125,000, meaning those coins would be worth about $6.25 billion today. The sale followed legal rules to avoid holding volatile seized assets, but many critics say it cost the state roughly $3.57 billion in unrealized gains.
Who does this affect: German taxpayers, policymakers, crypto users and anyone watching how governments handle digital assets.
German taxpayers effectively lost a potential windfall when the country sold the coins instead of holding them. Lawmakers and regulators now face criticism and calls to rethink whether seized crypto should be kept as a strategic reserve. The wider crypto community is also watching, especially given the contrast with the US approach of holding nearly 200,000 BTC as a reserve.
Why does this matter: Government decisions on seized crypto can move markets, change national balance sheets, and shape policy and investor expectations.
Dumping large seized holdings can reduce future upside for the state and may influence short-term supply, price signaling and investor sentiment. The episode could push other governments to consider holding Bitcoin as a strategic reserve or to change seizure and liquidation rules, which would affect future market liquidity and risk pricing. It also accelerates debates around custody, tax rules and disclosure that will shape adoption and market structure going forward.