Inactive reserve is distributed among over 100 wallets associated with the now-defunct site. Reports have revealed that site operators were apprehended in 2019, and that German authorities seized nearly 49,858 BTC in January 2024. Those coins were subsequently sold off in June and July 2024. The recently discovered 45,000 BTC, however, has remained inactive since 2019, indicating that it is under the control of the same operators instead of being held by state authorities.
According to reports, the January 2024 seizure – nearly 49,860 BTC – was liquidated at an average price of $57,900, resulting in approximately €2.64 billion, or around $2.90 billion. Germany justified the action by cautioning about a potential “significant loss of value of around 10% or more” if the coins were retained for a longer period. Since then, market prices have increased, and Bitcoin has risen beyond $123,000, making the previous transaction appear to have been a significant missed upside in terms of raw numbers. The recent discovery does not imply that those wallets are subject to seizure by the state. Legal actions would be necessary to establish ownership and obtain court orders.
There are also technical challenges: dormant keys, intricate custody chains, and international connections can hinder or obstruct enforcement. Experts indicate that a rebound is achievable in certain situations, though it is seldom fast or straightforward. If a significant amount of coins were to be introduced into the markets, it could generate pressure akin to what was observed following the mid-2024 disposals. Joana Cotar, penned an open letter calling for a reconsideration. She contended that retaining confiscated Bitcoin as a national reserve might have yielded significantly greater returns for the state.
Bundesbank President Joachim Nagel has cautioned that Bitcoin exhibits volatility, drawing a comparison between its price surges and Tulip Mania – a financial bubble that occurred in the Dutch Republic in the early 1600s. It is frequently referred to as the earliest documented speculative bubble in history. Various nations have chosen distinct routes. Reports indicate that El Salvador has recently transferred $678 million in Bitcoin into 14 wallets to protect against quantum risks, while ensuring that the holdings remain visible on the blockchain.