Ein Beschuldigter hat mutmaßlich mehrere Millionen Euro aus Anlagebetrug erlangt und in Bitcoin sowie Stablecoins geparkt. Die Wallet ist bekannt, der private Schlüssel nicht. Der Kurs schwankt binnen Stunden zweistellig. Genau in dieser Lage entscheidet sich, ob die Vermögensabschöpfung gelingt oder ob am Ende ein Titel auf dem Papier steht, dem keine Werte gegenüberstehen.
The confiscation of cryptocurrency follows the same rules as any other asset forfeiture. The difficulties lie not in the substantive law, but in the technical implementation: linking the coins to the crime, accessing the key, valuing a volatile asset, and obtaining evidence that will hold up in the decision and the judgment.
Finanz Forensik GmbH provides support Investigative authorities and public prosecutors This article addresses precisely these questions. It establishes the legal framework within which the prosecution and defense operate and demonstrates where a court-admissible forensic report determines the success or failure of confiscation.
The most important information at a glance
- Legal basis: Cryptocurrency assets are subject to confiscation. Access is gained through the confiscation of the coins themselves or, if that is not possible, through the confiscation of their equivalent value in euros.
- Compensation: If the private key is unknown or the coins have been transferred, the court will order compensation in euros. The minimum value is the value at the time of acquisition.
- Backup: Preliminary seizure and asset freeze ensure access before assets disappear via mixers or stock exchanges.
- Emergency sale: In cases of imminent loss in value, the law permits early liquidation. With cryptocurrencies, this is regularly relevant due to their volatility.
- Victims: Through the recovery assistance for the benefit of the injured parties, recovered assets flow back to the injured parties instead of into the state treasury.
- Evidence: The attribution of the coins to the crime and their valuation depend entirely on a forensic report that fully documents the chain of evidence.
Legal basis: Confiscation of cryptocurrency in practice
Cryptocurrencies are not a lawless space. Bitcoin, Ether, stablecoins, altcoins, and NFTs are considered assets with market value and are therefore subject to asset forfeiture. The purpose is the same as with cash or real estate: to make crime unprofitable. Anything obtained through the crime is confiscated from the perpetrator.
Three scenarios are crucial in practice. The choice between them determines the wording of the application, the decision, and the operative part of the judgment. One detail is often underestimated: crypto assets are not more difficult to confiscate because the law has loopholes, but because the asset can be moved across national borders in seconds at any time and without a bank. The law is static, the asset is volatile. This tension shapes each of the following case groups.
Original confiscation: Access to the coins themselves
Sind die Coins im Original noch vorhanden und der Behörde zugänglich, wird die Einziehung des Erlangten nach § 73 StGB angeordnet. Das setzt praktisch voraus, dass die Ermittler den privaten Schlüssel kontrollieren oder die Coins auf eine behördliche Wallet übertragen können. Der bekannte Satz not your keys, not your coins gilt auch für den Staat: Ohne Schlüssel keine faktische Verfügungsgewalt.
Confiscation of the original assets is the standard procedure when a cooperating suspect, a hardware wallet with a seed phrase, or an exchange provides access. This has the advantage that any increase in value automatically accrues to the state and thus, potentially, to the victim.
Compensation for lost value: the fixed euro amount
The more common scenario: The key is unknown, the coins were transferred via a mixer or multiple exchanges, or they are simply no longer accessible. In such cases, the court imposes a claim for compensation instead of confiscating the physical object. The court sets a specific euro amount that the individual owes.
For valuation purposes, the compensation should at least cover the value at the time of acquisition. Whether subsequent price increases should also be included is a matter of debate and will depend on the specific valuation. In any case, the underlying price, the valuation date, and the quantity of coins must be verifiably documented. This is precisely where forensic analysis provides the reliable figure.
Confiscation of instruments and tools used in the crime
Neben der eigentlichen Krypto-Beute lassen sich auch die Werkzeuge der Tat einziehen. Auf die Kryptowährung selbst passt das nur eingeschränkt, weil sie nicht in gleicher Weise ein körperlicher Gegenstand ist wie ein Fahrzeug oder eine Waffe. Relevant wird die Einziehung der Tatmittel aber für Hardware-Wallets, Mining-Hardware oder Geräte, mit denen betrügerische Plattformen betrieben wurden.
In practice, the recovery of the actual crypto loot almost always takes place via confiscation of the proceeds or compensation for their value, while the accompanying infrastructure is captured via confiscation of the means of committing the crime.
Provisional seizure and asset freeze
Material confiscation is useless if the assets have disappeared by the time of the verdict. Therefore, the law provides tools for preliminary seizure. With cryptocurrencies, speed is crucial because a single transaction can render coins inaccessible across a chain and a mixer.
Seizure and access to the wallet
Cryptocurrencies can be seized as other property rights. The legal order is the easier part. The technical implementation, i.e., the secure transfer to a government wallet, requires the private key or the cooperation of an exchange. Without one of these access points, the seizure is practically ineffective.
Before any access can be granted, the question arises as to which addresses can actually be attributed to the accused. About Blockchain analysis and address clustering We narrow down the relevant wallets and provide the basis for a targeted decision that does not miss the mark.
Asset seizure: access to all assets
If confiscation of the value of the stolen goods is a possibility, an asset freeze secures subsequent access to all of the affected person's assets. It is not limited to the objects of the crime and allows for the seizure of any assets, such as accounts into which cryptocurrency proceeds have been deposited. This ensures that the claim remains enforceable even if the coins themselves are no longer traceable.
Emergency sale of volatile crypto assets pursuant to Section 111p of the German Code of Criminal Procedure
No other seized asset fluctuates as wildly as cryptocurrency. A loss in value of ten percent or more within just a few days is not uncommon. Emergency disposal is permissible if a significant loss in value is imminent or if safekeeping poses significant difficulties. Both of these conditions are regularly met with volatile cryptocurrencies.
The public prosecutor's office argues that the typical volatility and the impending devaluation of Bitcoin are contributing factors. The coins are being prematurely exchanged for euros, the proceeds are being held in trust, and in the event of confiscation, they will be paid out to the state or victims. The large Bitcoin sale in Saxony in 2024 demonstrated how consequential the timing of such a sale can be if the price subsequently continues to rise.
In practice, this means that the decision to conduct an emergency sale requires a reliable valuation and thorough documentation of the share price development. If the sale is carried out too early or too late, accusations quickly arise that the affected party's assets have been destroyed. A forensic valuation report also protects the authorities against subsequent liability claims.
There is also a practical hurdle: the sale itself must take place on a suitable trading platform without disrupting the market and without the origin of the coins creating new problems. Anyone who carelessly dumps large quantities on the market will drive down the price and thus harm precisely the interests that the emergency sale is meant to protect. This, too, is part of a well-prepared decision.
Recovery assistance: Collection for the benefit of the victims
Asset recovery does not solely benefit the state treasury. Where there are individual victims, such as investors after a cryptocurrency fraud, their compensation takes priority. The recovered assets are distributed to the victims, whose claims have been established in the proceedings, through asset recovery assistance.
For this to work, the stolen coins must be traced back to the defrauded investors and their payments. This connection is precisely what forensic analysis provides. Crypto Asset Recovery from the victim's deposit through forwarding to the wallet where the funds ultimately end up: from the initial deposit to the final destination.
For victims and their lawyers, this is a strong argument for getting involved in the proceedings early on. Those who can prove that secured assets are attributable to their own deposit significantly improve their position when it comes to receiving compensation.
The forensic report: A bridge between blockchain and decision
The legal framework for confiscation is clear. The crucial question is almost always: Can the connection of the coins to the crime and their value be proven in such a way that the decision and judgment will stand? This is where forensic work comes in.
We connect Crypto forensics mit klassischer Finanzermittlung. Die Transaktionsverfolgung über die Blockchain zeigt, wohin die Werte geflossen sind. Das Adress-Clustering ordnet Wallets einer wirtschaftlichen Einheit zu. OSINT-Recherchen verbinden pseudonyme Adressen mit realen Personen und Konten bei Börsen.
Disguise tools require special care. If the trail leads through a Crypto Mixer, Using standard methods, the investigation often reaches its limits. However, specialized analysis techniques can frequently continue the trail or at least clearly document the mixer input as the last verifiable point.
The result is a report admissible in court: comprehensible, methodologically transparent, GDPR-compliant, and presented in such a way that a court can examine the chain of evidence without technical expertise. It provides the quantity of coins, the relevant exchange rate and valuation date for the compensation, as well as the allocation upon which the application and the judgment are based.
The value of such a report becomes apparent at the latest during the main trial. The defense will challenge every address assignment and every exchange rate assumption. If the documentation holds up because every step is reproducible, the confiscation will be successful. If questions remain unanswered, the amount seized becomes vulnerable. Therefore, we document not only the result but also the process leading up to it, including the data sources used and the assumptions made.
Typical sources of error in cryptocurrency collection
In practice, we are familiar with recurring weaknesses. Knowing them prevents an otherwise clean skimming operation from ultimately failing.
First: the data is secured too late. Between the initial suspicion and the court ruling, defendants move their coins. Second: imprecise address assignment, so the ruling includes wallets that don't belong to the defendant, or conversely, misses the relevant addresses. Third: a valuation without documented price and date, which won't hold up in a dispute over compensation. Fourth: a lack of allocation to individual victims, which complicates disbursement to the injured parties.
Each of these issues can be mitigated through early forensic support. The earlier the analysis begins, the greater the chance of actually reaching the target values.
Support in the recovery of crypto assets
Whether it's investment fraud, money laundering, or insolvency offenses: the confiscation of cryptocurrency hinges on a reliable classification and a legally sound assessment. We provide both in a court-admissible report, nationwide, discreetly, and typically with an initial response within one business day.
Are you investigating a case involving cryptocurrencies or representing victims? Talk to us about securing assets, compensation, and recovery. Call us at +49 6057 9189145, write to postfach@finanz-forensik.de or use our Contact form.
FAQs – Frequently Asked Questions about the Seizure of Cryptocurrencies
Yes. Bitcoin, Ether, stablecoins, altcoins, and NFTs are assets with market value and are subject to asset forfeiture. This is enforced either through the actual confiscation of the acquired assets or, if that is not possible, through compensation of their value. The difficulties lie not in the law itself, but in the technical implementation.
In the case of original confiscation, the coins themselves are seized. This requires that the authorities control the private key or can transfer the value to an official wallet. If this is not possible, for example because the key is missing or the coins have been moved, compensation is provided. In this case, a euro amount is determined.
The decisive factor is at least the value at the time of acquisition. Whether subsequent price increases should also be included is disputed and depends on the individual assessment. Crucially, the quantity of coins, the underlying price, and the valuation date must be verifiably documented. A forensic report provides reliable evidence of these figures.
Without the private key, even the state has no actual control over the coins. A seizure can be legally ordered, but remains ineffective if the key is unknown and no exchange cooperates. That's why securing the key early on or accessing it through a custodian is so important.
If a significant loss in value is imminent or storage is associated with considerable difficulties. With cryptocurrencies, due to their high volatility, a potential loss in value is regularly expected, often starting at around ten percent. The coins are then prematurely exchanged for euros and the proceeds are held in safekeeping. Thorough documentation of the price development at the time of the decision is crucial.
Then the injured parties have priority. Through the recovery assistance program, the recovered assets are distributed to the victims whose claims have been established in the proceedings. A prerequisite is that the secured coins can be linked to the victims' deposits. Forensic analysis establishes precisely this connection.
This is achieved through a combination of blockchain analysis, address clustering, and OSINT. Clustering groups addresses into economic units, transaction tracking reveals money flows, and OSINT links pseudonymous addresses to real people, accounts, and exchanges. The result is a mapping upon which applications and decisions can be based.
Mixers are intended to obscure the origin of the data. Using standard methods, the trail often ends there. However, in many cases, it can be continued with specialized analytical techniques. Where this is not possible, the mixer input is clearly documented as the last verifiable point. This is important for later arguments in the proceedings and is disclosed in the forensic report.
Yes. Asset seizure secures the subsequent confiscation of substitute value and is not limited to the objects of the crime. It allows for the seizure of any assets belonging to the person concerned, such as accounts into which cryptocurrency proceeds have been deposited. This ensures that the claim remains enforceable even if the original coins can no longer be located.
As early as possible, ideally before the first seizure order. The sooner the addresses are assigned and the assets located, the higher the chance of reaching them before they disappear via exchanges or mixers. Consulting us is always advisable when coins need to be valued, wallets assigned, an emergency sale needs to be justified, or assets need to be secured for victims. We provide court-admissible reports nationwide and typically respond within one business day. Contact us at +49 6057 9189145 or postfach@finanz-forensik.de.
