Theft of coins
Theft of coins: What happens when stolen at an exchange?
Theft of coins on an exchange — An overview of the experts from Kryptoanwalt.de
The special situation on the stock exchange
Anyone who stores cryptocurrencies on an exchange usually does not store them in their own wallet, but in accounts on the platform. This has advantages in terms of trading and liquidity — but also a significant disadvantage: The exchange has control over the private keys. Theft can happen in various ways, each with its own legal consequences.
Typical theft scenarios
Unauthorized access to the user account
Through phishing, malware or tapping access data, attackers take over the account and transfer the inventory.
Hack the exchange yourself
The platform becomes the target of an attack; coins from hot wallets are being stolen on a larger scale — with effects on all affected users.
Internal abuse
Platform employees misuse access rights to steal coins. Such cases are rare but do happen in practice.
Manipulating API accesses
Weaknesses in automated trading systems or stolen API keys lead to unauthorized trades or sales.
Legal action following a theft
Immediate blocking and collection of evidence
Instantly block access, change passwords, activate multi-factor authentication and secure all relevant screenshots, emails, and transaction data.
Report to the Exchange
Take advantage of the platform's official support and compliance channels. Document every communication — ideally in writing and comprehensible.
criminal complaint
Report it to the police. This is regularly a prerequisite for subsequent compensation or insurance claims.
Civil claims against the Exchange
Depending on the contract situation and location of the platform, there are different claims — for example for the surrender of the coins or for compensation due to breach of duty.
If applicable Involvement in collective proceedings
In the case of large-scale hacks, victims often organize themselves in bundled proceedings or use international claims platforms.
Tax classification
Theft on an exchange does not automatically result in a tax-recognized loss. The tax authorities regularly check whether the transaction can be attributed to a taxable type of income and whether the damage is final. Especially in the case of ongoing insolvency or court proceedings against the affected stock exchange, this question is often unanswered for years. An early legal evaluation provides clarity as to which approaches are viable in a specific case.
Typical mistakes made by injured parties
Waiting too long in the hope of a “solution through the Exchange,” while deadlines pass.
- Uncoordinated communication with support, police and tax advisors — resulting in loss of evidence.
- Preemptive tax classification as a “final loss” without a reliable basis.
- No review of claims against backers, third-party providers or payment service providers.
Were coins stolen from an exchange?
Conclusion
The theft of coins on an exchange is a particularly stressful case of loss — but not an individual fate from a legal point of view. A structured combination of civil claims prosecution, criminal reporting and careful tax assessment is the key to narrowing down losses and, ideally, getting them at least partially compensated.
This information is intended as general guidelines and cannot replace individual advice from our experts. The legal and tax treatment may vary depending on your specific situation and current regulations. It is highly recommended that you contact our lawyers to clarify your personal situation and meet legal requirements.