Law enforcement authorities in Saxony, eastern Germany, have taken possession of 50,000 bitcoins from the former operator of the infamous pirate site Movie2k.to.
The voluntary deposit into a state-controlled wallet sets a record figure, amounting to over $2.1 billion at the current Bitcoin-USD exchange rate, according to a BleepingComputer report.
Kay Anders, a representative for the Saxony state police, described the case as "the most extensive seizure of bitcoins by law enforcement in the Federal Republic of Germany to date." He added that the funds will be held in the authorities' Bitcoin account until a court decides on the next steps.
A physical imitation of Bitcoins are pictured at a cryptocurrency exchange branch near the Grand Bazaar in Istanbul on October 20, 2021.
Mega Profits From Movie Piracy
Movie2k.to was operational between 2008 and 2013, providing users primarily in English and German-speaking regions with links to stream or download movies and TV shows without hosting copyrighted material.
Despite not directly hosting protected content, the online streaming platform faced extensive scrutiny, legal challenges, ISP-level blocks, and domain changes due to its central role in facilitating piracy. The original Movie2k.to was shut down in May 2013 following legal action by the Motion Picture Association of America.
Police and FBI specialists persisted in their investigation into the initial platform's operators. Eventually, they identified a 40-year-old German and a 37-year-old Polish suspect. Police said one suspect willingly gave Bitcoin to the law enforcement authorities. These funds are believed to have been derived from Movie2k's profits, encompassing advertising revenue and membership subscriptions.
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During its active years, Movie2k.to ranked among the top 25 most-visited websites in Germany, offering tens of thousands of movies for illegal download. Users globally accessed the platform, downloading nearly 880,000 copies of films during its five-year operation. After Movie 2K's closure, websites with similar names and content emerged.
How Criminals Utilize Crypto in Schemes
The arrested programmer, responsible for operating the site, strategically invested the profits in Bitcoin, witnessing its value soar to over 40,000 euros per coin. Initially apprehended in 2019, the programmer was recently released, having confessed to his role and subsequently cooperating with authorities, including the US Federal Bureau of Investigation.
Further details on the investigation, led by the Dresden General Prosecutor's Office, the Saxony State Criminal Police Office, and the local tax office, remain confidential with FBI and forensic IT expert support, per Cybernews.
In the past, criminals have turned their illegal revenue into Bitcoin to avoid detection, according to The New York Times. Cryptocurrency money may be kept in a private digital wallet or hard drive, bypassing bank scrutiny and complicating seizure operations by authorities. In recent years, law enforcement has developed ways to track digital currency and connect anonymous accounts to actual people.
This substantial seizure marks the second major incident associated with Movie 2K. According to the German news site TarnKappe, one accused was connected to mega-downloads.net. 'Since 2009, Hanover police have sought to identify this platform's operators.
The German police's acquisition of 50,000 bitcoins mirrors the US federal authorities' previous $3.3 billion bitcoin seizure from an individual involved in hacking and stealing from the Silk Road dark web store.
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