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In 2024, a man convicted for his involvement in pirate IPTV service Viking IPTV received a relatively modest suspended sentence, despite serving several thousand customers. However, a cryptocurrency analysis revealed transactions dating back to 2018 and police were eventually able to seize 12.7 bitcoin. The Swedish Enforcement Authority recently sold the haul at auction, with proceeds in excess of US$1 million set to benefit the Swedish state.

In common with many countries in Europe, rightsholders in Sweden are attempting to tackle demand for pirate IPTV services and the many suppliers more than willing to meet it.

Assisted by rightsholders, Swedish law enforcement only has the resources to pursue a relatively small number of cases all the way to prosecution and trial. The case against a man said to be behind one of the most popular platforms was among a select handful of similar cases in recent years.

Indicted for Copyright Violations

In 2023, the man was indicted for his alleged ‘involvement’ in Viking IPTV, a pirate IPTV service popular in Sweden and recognized across the Scandinavian region.

Viking provided access to a wide range of content, and with demand from the public only increasing, the service had no shortage of customers. Anti-piracy group Rights Alliance reported that Viking IPTV had become a well-known brand in Sweden, with a level of business befitting that of a leading provider.

During the trial at Sweden’s Patent and Market Court (PMD) in May 2024, much evidence was presented to establish the man’s guilt. He had logged into the service’s support email and managed Viking’s Facebook page, among other things. The court also heard that he generated substantial profits from the service.

Making Money, Moving Cryptocurrency

In common with similar services, customers of Viking had options to pay: the convenience of PayPal or cryptocurrency.

Those who opted for Bitcoin sent cash via Swedish mobile payment service Swish to an exchange, with Bitcoin forwarded to wallets operated by unnamed individuals further up the chain. Rights Alliance and the police agreed that the success of the service meant there was plenty of Bitcoin to send.

Viking IPTV had several thousand customers and turned over a significant amount of money. A police cryptocurrency analysis revealed clusters of Bitcoin wallets linked to the man, which received roughly 308 Bitcoin in the period 2018 to 2022, and worth over US$20 million at the rates prevailing at the time, authorities said.

Convicted and Sentenced

In comments to local tabloid Expressen in 2020, the man reportedly boasted of an annual turnover of 12 million kronor, with 80% of that amount being profit. The paper also published snippets of chats which it linked to the operation of Viking IPTV. One message claimed that it had taken just 20 days to generate €75,000, an amount subsequently spent on a new Italian kitchen.

After being convicted of copyright crimes in May 2024, a total of 12.7 Bitcoin seized by the police were always headed in the wrong direction. Yet, things could’ve been much worse. Rights Alliance reported that the man was handed a suspended prison sentence and ordered to pay daily fines. The length of the suspended sentence and level of daily fines weren’t revealed.

State Disposes of Pirate Booty

In an announcement on Monday, Rights Alliance said the convicted man filed an appeal against his conviction but subsequently withdrew it. That meant that the judgment handed down by the Patent and Market Court in 2024 became legally binding.

In late November, revealed that the Swedish Enforcement Authority (Kronofogden) was preparing to dispose of four batches of digital assets in separate auctions.

The 12.7 bitcoin from the Viking case would have a reserve price of 9 million kronor (US$958.3K) versus a market price at the time estimated at 10.6 million kronor (~US$1.13 million)

“The preliminary investigation indicates that the man earned significant proceeds from the crime,” Rights Alliance commented on Monday.

“That criminals earn enormous sums from illegal IPTV is not news; it is evident in most judgments and investigations. The convicted man withdrew his appeal last autumn, and the Patent and Market Court’s ruling thus became legally binding. The Swedish Enforcement Authority has now sold the seized 12.77 Bitcoins for SEK 9,550,000 [~US$1.02 million]. The media describes the sale as a “record auction.”

While the film and TV company plaintiffs in the case won’t see any return from the money now headed to the public purse, the Court awarded damages to Svensk Filmindustri, Nordisk Film, and several companies from the TV sector.

Rights Alliance previously said that total damages claims were just under US$1.5 million.