Saxony sold confiscated Bitcoins worth 2.64 billion euros

This will be the largest proceeds from seized assets in German history

Back in January, digital crime investigators in the German state of Saxony seized the assets of an illegal streaming platform (which had been shut down in 2013). It turned out that the said assets were in the form of 50,000 Bitcoins. Over the past four weeks General Prosecutor's Office Dresden announced that it had authorized a “market-stabilizing sale” of the cryptocurrency, which resulted in netting 2.64 billion euros – becoming the largest monetary proceedings from confiscated assets in German history.

There are a few interesting things to unpack here, however. For one, the Dresden Public Prosecutor's Office ordered a so-called "emergency sale" fearing loss of value due to the volatility of cryptocurrency. It turned out that the opposite happened, and the revenue generated in the end was higher than the initial estimates.

That also has to do with the way the Bitcoins were sold on the market, hence the “stabilizing sale” term. Instead of just selling them in one batch, which would have resulted in a drastic drop in price, the crypto assets were sold off in the course of four weeks between 19 June and 12 July.

Now that the Bitcoins have been converted into euros though, it appears that it is

Not clear who stands to get the money

The huge sum has been deposited with the Leipzig Regional Court until the criminal proceedings have been concluded. It is up to the court to decide how the funds will be split.

What’s clear is that the State of Saxony doesn’t automatically get a claim on the cash.

First, it must be clarified in court whether there are claims from third parties such as filmmakers, film distributors or those who have been defrauded by the operation of the illegal streaming website.

Only then could the state authorities get to use the money, although there have already been calls on the part of politicians that it should be used for the renovation of daycares, schools and hospitals.