Saxony Faces Repayment of 2.64 Billion Euros from Bitcoin Sale

The sale of nearly 50,000 confiscated Bitcoin by the German state of Saxony in 2024 could develop into a legal disaster. Saxon authorities had seized the cryptocurrencies in connection with the illegal streaming portal Movie2k and sold them for approximately 2.64 billion euros ^[1].

The Leipzig Regional Court is currently trying the main suspect Josef F. and an alleged accomplice. The responsible economic crimes chamber takes the position that parts of the original charges may have already become statute-barred in 2023 ^[1]. Since the confiscation of assets requires a valid criminal law basis, the legal justification for retaining the billions could be invalidated.

Particularly explosive: Saxony has meanwhile invested the sale proceeds in capital markets and has already earned over 100 million euros in interest ^[1]. In the event of a repayment obligation, the Free State would have to repay not only the 2.64 billion euros under current case law, but also surrender the earned interest as compensation for use. The Finance Ministry already announced in January that the proceeds may not be used for the time being ^[1].

The trial begins on February 24. A verdict date has not yet been set.