A ruling by Germany’s Higher Regional Court of Braunschweig has determined that using a known cryptocurrency wallet’s 24-word recovery phrase to transfer assets does not violate criminal law.
The court found that such an act does not constitute ‘overcoming a special access security’ as defined under Section 202a of the German Criminal Code. This interpretation exposes a significant legal ambiguity concerning how ownership and authorized access are verified within blockchain systems.
The ruling underscores that German criminal law currently lacks specific provisions addressing the unique nature of blockchain technology, where mere possession of private keys or recovery phrases confers absolute control, regardless of how they were obtained. Existing statutes do not directly account for unauthorized transfers facilitated by known but improperly obtained credentials.
Legal experts suggest the case highlights an urgent need for future legislation to define clearer frameworks. Such frameworks would aim to align criminal liability for unauthorized cryptocurrency transfers with traditional principles governing theft and property rights.
This legal stance in Germany contrasts with approaches in some other jurisdictions, where laws explicitly criminalize unauthorized crypto access, pointing towards the broader challenge of establishing harmonized international standards for blockchain asset security.