States are increasingly becoming holders of Bitcoin, with Germany recently announcing a significant seizure of cryptocurrency. This move has stirred the market, as it recalls the unease caused by incidents like the Silk Road. The United States is noted to possess Bitcoin holdings valued at $9.5 billion, according to Arkham data.
Germany’s Record Crypto Seizure
The German police have reported the confiscation of 50,000 BTC, estimated at $2.17 billion, marking the largest cryptocurrency operation in history. These assets were apprehended during a crackdown on a website that breached the Copyright Act in 2013.
The illegal earnings from this operation were converted into Bitcoin, with one of the two suspects handing over the digital assets to the Federal Criminal Police Office (BKA). While no formal charges have been brought against them, an inquiry into commercial money laundering is underway.
The police announcement highlighted the collaborative efforts of the Dresden Public Prosecutor’s Office, the Saxony State Criminal Police Office, the Leipzig II Tax Office, the BKA, the FBI, and a Munich-based IT forensic firm. This seizure is unparalleled in German law enforcement history.
The investigation focuses on two individuals linked to a German pirate company, active until May 2013, who are suspected of using the proceeds to purchase Bitcoin. The probe continues into the unauthorized commercial use of copyrighted material and potential commercial money laundering.