Bitcoin
German Legal Framework Confirms Creditor Rights to Seize Debtor Crypto Assets
German civil enforcement rules and court rulings confirm that Bitcoin can be seized through claims against custodians or direct orders against debtors.
Under German civil enforcement law, creditors possessing an enforceable title are legally entitled to seize a debtor's Bitcoin and other cryptocurrency holdings. In personal insolvency proceedings, individuals are legally obligated to declare all digital assets as part of the insolvency estate.
Because the German Code of Civil Procedure lacks a dedicated crypto provision, courts capture digital assets under Section 857 as "other property rights." This classification was formally confirmed at the appellate level by the Berlin Higher Regional Court in a ruling dated December 6, 2023, establishing that crypto assets do not escape legal enforcement.
Enforcement methods diverge based on custody. When assets reside on an exchange, creditors attach the user's claim for payout directly against the platform as a third-party debtor. For self-custodied holdings, authorities must compel the debtor directly, with statutory enforcement mechanisms extending to civil detention if cooperation is refused.
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