Germany’s €2.64B Bitcoin Liquidation Faces Further Scrutiny

Proceedings at the Leipzig Regional Court are examining one of Europe’s largest crypto-related cases.

In 2024, authorities seized and sold 50,000 BTC for €2.64 billion. The funds were managed through Landeskriminalamt Sachsen.

Prosecutors now allege that an additional 57,000 BTC may be linked to the case.

If validated, this would represent one of the largest concentrated bitcoin holdings ever tied to a criminal investigation.

Public debate intensified after Michael Saylor criticized the liquidation. However, German law requires rapid monetization of confiscated assets rather than strategic holding.

The case may shape future EU crypto confiscation procedures.

Blockchain Association Proposes Framework for U.S. Digital Asset Tax Reform

On February 24, 2026, the Blockchain Association published ten principles to guide the modernization of U.S. tax legislation for digital assets.

The framework emphasizes:

• Practical compliance for taxpayers and the IRS

• De minimis exemptions for everyday transactions

• Treating stablecoins as cash

• Taxation of mining and staking upon disposition

• Functional consistency across financial instruments

• Protection of privacy in reporting regimes

• Safe harbor provisions for foreign market participants

• Recognition of economic substance over technical form

The association also supports optional mark-to-market accounting, inclusion of digital assets in retirement accounts, and R&D tax credit eligibility for blockchain development.

The broader objective: create predictable, administrable rules that support innovation while maintaining enforcement integrity.

The crypto market is losing momentum as ETF outflows rise and expectations for near-term Fed easing fade.

By the end of the week, Bitcoin is holding near $90,900, while total market capitalization stands at $3.11 trillion. However, sentiment has weakened notably: Bitcoin ETFs saw more than $1 billion in outflows over the past three days, and even XRP ETFs recorded their first net outflows since launch.

Early gains were driven by geopolitical developments and optimism around a more dovish Fed in 2026. That optimism has since cooled as Federal Reserve officials signaled caution, reducing the likelihood of a January rate cut to just 11.6%.

Combined with renewed security concerns following the Truebit protocol exploit, the market is now entering a more defensive phase. Consolidation or further downside appears increasingly likely in the near term.