News - LKA Saxony seizes 50,000 Bitcoin

By Mike Hesp

LKA Saxony seizes 50,000 Bitcoin

Bitcoin (BTC)
Scams, crime and fraud

Huge detection success in the German region of Saxony. The LKA seized Bitcoin worth two billion euros. How could this happen?

In mid-January, investigators in Saxony seized about 50,000 Bitcoin worth two billion euros. This is the largest seizure of Bitcoin by German law enforcement agencies to date, as LKA spokesperson Kay Anders said confirmed to MDR.

The joint investigation by the Dresden prosecutor's office, the Saxony State Criminal Investigation Department (LKA) and the tax investigation department of the Leipzig II tax office targeted a 40-year-old German and his 37-year-old accomplice from Poland.

The LKA accuses the defendants of operating the illegal streaming portal "movie2k.to" until the end of May 2013. This was considered the successor to the popular "kino.to" and was itself one of the main illegal streaming platforms in German-speaking countries.

The two suspects allegedly distributed a total of more than 880,000 illegal copies. The money they received from the illegal business model with advertising and subscription traps was allegedly invested in Bitcoin at the time.

This explains the amazingly high value of their BTC investments today, because even at the height of the bull market at the time, BTC only briefly reached the $1,000 mark. As a result, long-term buy & hold has generated returns of at least 40 times the original investment to date.

Despite the disciplined "hodling," their criminal energy apparently did not pay off, because under pressure from the investigation, one of the suspects voluntarily turned over the huge amount of Bitcoin to the federal investigators. Against this background, no charges have yet been filed.

It remains unclear what will happen to the seized Bitcoin. Thus, the state of Saxony holds more Bitcoin than El Salvador, at least for now, and competes with ownership of the BlackRock ETF. A sale in the near future seems most likely. The proceeds will probably benefit Saxony's state treasury. After all, the state currently has a debt of nearly 9 billion euros.

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