Cryptocurrency - Municipal level will profit from Bitcoins earnings
The municipalities and districts in Saxony aim to benefit from the so-called Bitcoin treasure. The Saxon City and Town Association (SSG) and the County Association are demanding a 35% share of the proceeds from the sale of confiscated Bitcoins. With an estimated revenue of around 2.64 billion Euro, this would amount to 924 million Euro. SSG President Bert Wendsche referred to the precarious financial situation in cities, towns, and districts. "Despite the agreed-upon cornerstones for the communal financial equalization in 2025/2026, many communal budgets will not be balanced in the next two years.
According to Wendsche, the proceeds from the sale of the "Saxony Bitcoin Hoard" are an opportunity to compensate structurally underfinanced budgets of the state and municipalities and bring urgently needed investments on the way. It is a good tradition in Saxony and partly legally secured that the Free State and municipalities participate in each other's additional revenues. These principles should also be applied to the 2.64 billion Euro that Saxony has earned from the sale of the secured Bitcoins. The 35% corresponds to the quota with which Saxony usually involves the municipalities in its revenues.
The problem: Legally, the Free State cannot yet use the money for itself. A judicial decision must be made before the conclusion of a still ongoing criminal proceedings. The municipal peak associations assume that the revenue will flow to the land where the competent court is located. In this case, it is the Leipzig District Court.
The General Prosecutor's Office in Dresden announced on Tuesday that the nearly 50,000 confiscated Bitcoins had been sold. The money comes from a case against the illegal film exchange "movie2k". The accused had declared in early 2024 that he would transfer the Bitcoins to a wallet made available by the Federal Criminal Police Office. He was arrested in early 2023 after an international arrest warrant was issued against him. He is accused of illegally exploiting copyrighted works in almost 220,000 cases.
- The sale of the confiscated Bitcoins in the "Saxony Bitcoin Hoard" is expected to bring approximately 2.64 billion Euro to Saxony, a significant amount for the commune's finances in Saxony.
- Given the perceived financial instability of many municipalities and towns in Saxony, SSG President Bert Wendsche suggests using the proceeds from the Bitcoin sale to balance budgets and facilitate necessary investments.
- The General Prosecutor's Office in Dresden, being the competent authority, sold nearly 50,000 confiscated Bitcoins, which stemmed from an illegal film exchange case in 2023.
- The Saxon City and Town Association and the County Association advocate for a 35% share of the Bitcoin sale proceeds, in line with the usual participation quota of Saxony in its revenue distribution towards municipalities.
