Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Crypto Theft May Not Be a Crime Under Current German Law

Crypto Theft May Not Be a Crime Under Current German Law

BeInCryptoBeInCrypto2025/07/29 13:09
By:Mohammad Shahid

A recent ruling by a German court suggests that transferring crypto from someone else's wallet using known credentials may not violate criminal law—raising major concerns for digital asset holders.

A German appeals court has ruled that using known wallet passwords to transfer cryptocurrency without permission may not violate criminal law. 

The decision is drawing sharp criticism from legal and crypto communities who warn it exposes a dangerous gap in existing statutes.

German Legal Loophole Allows Crypto Thief To Walk Free 

A man helped someone (the complainant) set up a crypto wallet to hold €2.5 million worth of certain tokens. 

The thief created the wallet and retained the 24-word recovery phrase. Unfortunately, the victim never changed that recovery phrase. 

Later, without authorization, he used the correct recovery phrase to transfer and potentially steal all the coins. The defendant was not authorized to move the coins and gave false statements.

The Higher Regional Court of Braunschweig concluded that the defendant did not “hack” the wallet, since he used passwords he had legitimately set up and retained. 

Therefore, the action did not satisfy the requirement of “overcoming a special access security” as defined under Germany’s Criminal Code.

Furthermore, the court ruled there was no deception involved, rejecting charges of computer fraud. 

Blockchain systems, the court said, do not assess user intent or permission. It only affirms the presence of a valid cryptographic signature. The court also dismissed claims of data tampering. 

This means that as long as someone has a valid password or recovery phrase—regardless of how they obtained it—transferring assets may not count as a crime, at least under current German law.

The ruling effectively removes criminal liability for actions that would otherwise be seen as theft in traditional finance. It highlights the legal system’s struggle to adapt to the technical structure of decentralized assets.

The court noted that while the conduct may violate civil obligations, contract breaches, or broken trust, do not automatically qualify as criminal offenses. 

However, the ruling does not suggest that all crypto theft is legal. If credentials were obtained through fraud or hacking, different charges could apply. But this case centered specifically on non-technical access using pre-existing, known credentials.

For now, the judgment exposes a gray area that German lawmakers have yet to address. 

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!