Unprecedented $2.1B bitcoin seizure in Germany linked to online piracy group

A suspect willingly transferred nearly 50,000 bitcoin to “official wallets”

article-image

Heiko Barth/Shutterstock modified by Blockworks

share

Police in Germany seized nearly 50,000 bitcoin worth roughly $2.1 billion. 

The authorities alleged that the bitcoin is tied to a piracy site that violated the Copyright Act back in 2013. According to a police statement, a German and Polish man were found responsible for the alleged money laundering and reportedly bought bitcoin with the proceeds. 

The Tuesday statement marks the largest bitcoin seizure by German authorities. 

The future of the assets remain uncertain, though the police statement clarified that a suspect “voluntarily transferred them to official wallets provided by the BKA.”

“A final decision has not yet been made about the utilization,” the statement said.

Read more: SEC settles with ‘Bitcoin Beautee’ over $1.7B HyperFund scheme

However, authorities said they would not be providing more information until they complete the investigation. No charges have yet been filed against the men. Bitcoin (BTC), as of Tuesday morning, was trading above $43,000. 

While the United States leads in global Bitcoin node count with 28%, Germany is not far behind with over 13% of global nodes, according to Bitnodes. From a regulatory standpoint, it has become more crypto-friendly over the last few years, with some of its biggest banks seeking crypto-custody licenses. 

Germany granted a crypto custody license to Commerzbank in November, making it the first “full-service bank” to receive such a license.

Deutsche Bank’s Paul Maley told Blockworks last September that it was interested in offering corporate and institutional clients custody of “selected cryptocurrencies and some stablecoins.”

The bank applied for a crypto custody license back in June of last year.

Updated Jan. 39, 2024 at 11:07 am ET: Modified headline to reflect value of bitcoin seizure.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flashnote Template (41).png

Research

We believe that few tokens at the application layer are diverging more from fundamentals than ZORA. Its fully-diluted P/S sits at 90x, pricing significant growth despite a consistent decline in weekly revenues since late July. We foresee an 80% decrease in protocol net margins due to a recent update to the fee structure that reduces trading fees from 3% to 1%, while boosting creators’ portion of the fee split. ZORA’s supply overhang also represents a near-term headwind, with 45% of ZORA’s supply (4.5B tokens or $350M at current prices) earmarked for the team & investors beginning to unlock on October 23, 2025 (36-month linear vesting schedule).

article-image

Insiders have the best information — markets should be willing to pay for it

article-image

The CFTC-regulated exchange is opening doors to crypto builders and traders through grants, partnerships, and new deposit options

by Blockworks /
article-image

DFS tells banking organizations to integrate blockchain monitoring tools to curb money laundering and sanctions risks

by Blockworks /
article-image

New short and long-term priorities include L1 gas boosts, ZK-EVMs, privacy reads, and a lean, quantum-resistant Ethereum

by Blockworks /
article-image

The new stBTC token redistributes Bitcoin gas fees to users, creating liquid yield without inflation or lockups

by Blockworks /
article-image

The reserve will collect protocol revenues to back W token, alongside new yield and unlock schedule

by Blockworks /