What crypto investors can do legally after a theft by Clipper malware
Disguised malware on a USB stick can secretly change the recipient's address when sending cryptocurrency. The funds then end up in the perpetrator's hands without your knowledge. Those who have been robbed in this way have legal recourse. Rogert & Ulbrich will examine whether the damage can be traced and claims pursued.
How the attack via USB sticks and the clipboard works
Security researchers recently described malware that spreads via specially crafted USB drives. The drives appear to contain normal files, but these files actually conceal disguised shortcuts that, when opened, silently launch a malicious program.
This type of malware is called a clipper. A clipper secretly monitors your computer's clipboard, the area where copied content is temporarily stored. As soon as you copy a wallet address to send cryptocurrency, the program replaces it with an address belonging to the attackers. To make the swap undetected, the attackers alter the first and last characters of the address to match the legitimate one.
Anyone who doesn't fully verify the recipient's address before confirming transfers their money directly to criminals. Some of these programs also scan the computer for saved recovery phrases and secretly take screenshots to estimate the value of a wallet.
Do you suspect your transfer has been manipulated? Secure all transaction data immediately before any traces are lost.
Why crypto theft is particularly difficult legally
A crypto transaction cannot be technically reversed. Unlike with a bank, there is no central authority that can stop or reverse a payment. Once the transfer is confirmed on the blockchain, it remains valid.
Furthermore, there's the issue of pseudonymity: initially, no name is associated with a wallet address. However, the trail can often be followed because every transaction on the blockchain is public and permanently visible. If the money later ends up on a trading platform that is required to identify its customers, this can provide a starting point for investigation.
This means that even if the transaction itself is irreversible, the funds are not automatically lost forever. Crucially, evidence must be secured quickly and a thorough analysis of the money flows is essential.
The sooner money flows are traced, the greater the chance of reaching the recipient. Don't wait.
What legal claims can victims have?
The theft of cryptocurrency via manipulated software regularly constitutes several criminal offenses. These include, among others, computer fraud (Section 263a of the German Criminal Code), data espionage (Section 202a of the German Criminal Code), and data manipulation (Section 303a of the German Criminal Code). Filing a criminal complaint is the first formal step in initiating an investigation.
In addition, civil claims exist. Anyone who intentionally deprives you of assets is liable for damages. This is based on tort liability (§ 823 of the German Civil Code), and in cases of intentional and immoral harm, additionally on § 826 of the German Civil Code. If a recipient can be identified, a claim for the return of what was obtained without legal basis may also be considered (§ 812 of the German Civil Code).
These claims presuppose that the opposing party can be identified. This is precisely where success hinges: without an identifiable defendant, even the best claim remains ineffective.
Whether an enforceable claim exists depends on the individual case. Have your case reviewed while the evidence is still fresh.
Against whom claims can be made
The primary target is the perpetrator himself. He is often anonymous, but in some cases, his identity can be narrowed down through blockchain analysis and the cooperation of trading platforms.
A second point of attack concerns the platforms through which the money is forwarded or paid out. Trading platforms are subject to due diligence and identification obligations. If a platform violates these obligations and thereby enables payments to be made to the perpetrators, it may be held liable. This is not the case in every instance and requires careful examination.
Thirdly, it's worth checking your existing insurance policies. Some cyber or home contents insurance policies cover damages caused by certain online crimes. Whether your policy applies depends on the agreed terms and conditions.
The best course of action in each individual case can only be determined by legal review. Describe your case to us.
What you should do immediately after a crypto theft
After a theft, every hour counts. Taking the right steps will secure evidence and keep the possibility of tracing the victim open.
- Secure transaction data: Note the transaction ID (hash), the wallet addresses involved, and the time. This information forms the basis for any further investigation.
- Do not overwrite existing records: Disconnect the affected computer from the network and do not use it again. This will preserve the malware for later analysis.
- Platform information: Report the incident to the trading platform to which the money was transferred. In some cases, accounts there can be blocked.
- File a criminal complaint: File a police report and submit the secured data. This will trigger an official investigation.
- Seek legal assistance: Have it assessed early on which civil and criminal steps are appropriate and in what order.
The more complete your evidence, the stronger your position. Secure it before making any changes to the device.
This is how you reduce the risk of future attacks.
The best protection is offered by a hardware wallet, where your keys are stored on a separate device without an internet connection. Your recovery phrase should be written down, never saved as a file or photo on your computer.
Before making any transfer, check the recipient's full address, not just the beginning and end. Avoid using USB drives from unknown sources and disable automatic execution of transfers from removable media. For larger amounts, a small test transfer is advisable. Always keep your operating system and security software up to date.
These measures significantly reduce the risk. However, they cannot completely eliminate residual damage. If a serious incident occurs, quick and correct action is crucial.
Already suffered damage? Then prevention is not what matters now, but rather the rapid securing of your claims.
Rogert & Ulbrich – Your lawyers for crypto fraud
Rogert & Ulbrich represents investors who have suffered losses due to cryptocurrency and online fraud. The firm, led by Dr. Marco Rogert and Tobias Ulbrich, has handled over 40,000 cases and filed more than 25,000 lawsuits. This experience with complex financial and mass litigation is also invaluable in pursuing claims related to digital assets.
We review your case, track money flows via the blockchain, correspond with trading platforms, and enforce claims both in and out of court. Where appropriate, we collaborate with specialized analysts and coordinate criminal charges with civil enforcement. Our multilingual team can also handle cross-border cases.
Has your crypto wallet been emptied by malware, or do you suspect a manipulated transaction? Get in touch and protect your claims.
