A recent case in Germany has revealed a serious legal gap in how the country's criminal law treats digital assets like cryptocurrencies. A man accused of stealing crypto worth €2.5 million (approx. $2.9 million) has escaped criminal charges—simply because German law doesn’t recognize crypto as "property" under its theft statutes.

🧾 The Problem: Crypto Isn’t a “Thing” Under Criminal Law

The case, heard by the Higher Regional Court of Braunschweig, involved the alleged unauthorized transfer of 25 million tokens from a private wallet. While this would appear to be theft in the digital world, the court ruled otherwise.

Under German criminal law, theft applies to physical, movable objects. Since cryptocurrencies have no tangible form, they fall outside this definition. This means a digital asset like Bitcoin or Ethereum can't be “stolen” under current legal terms.

Attempts to apply other laws, such as computer fraud or data manipulation, also failed. The court concluded that blockchain transactions cannot clearly be tied to deceptive data input or falsification of records, because decentralized networks don’t involve personal declarations or centrally verifiable authorship.

🚫 No Criminal Charges – But Civil Lawsuits Are Still Possible

Although the suspect avoided criminal prosecution, civil legal action is still possible—and likely—given the high value of the assets involved. Victims may be able to pursue damages through civil courts, even if the criminal code offers no remedy.

The case has triggered alarm in Germany’s legal and crypto communities. Experts warn that the court’s decision creates a dangerous precedent, leaving victims of crypto theft without protection under criminal law.

Legal analysts argue that urgent reforms are needed to classify digital assets like cryptocurrencies as protected property and introduce specific criminal provisions for crypto-related offenses. Otherwise, Germany risks becoming a haven for digital theft.

🌍 A Wider Issue Across Europe

The German ruling highlights a broader challenge across Europe, where legislation has yet to fully catch up with the rise of blockchain-based finance. While regulations like MiCA are beginning to provide structure for digital assets, criminal law remains outdated in many countries when it comes to prosecuting crypto theft.

As cryptocurrencies continue gaining mainstream adoption, lawmakers face growing pressure to modernize legal frameworks—not just to support innovation, but also to protect users from exploitation in the Web3 era.


#Cryptolaw , #Web3Security , #cybercrime , #crypto , #CyberSecurity

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“