A German appeals court has ruled that using known wallet passwords to transfer cryptocurrency without permission may not violate criminal law.
The decision is drawing sharp criticism from legal and crypto communities who warn it exposes a dangerous gap in existing statutes.
German Legal Loophole Allows Crypto Thief To Walk Free
A man helped someone (the complainant) set up a crypto wallet to hold €2.5 million worth of certain tokens.
The thief created the wallet and retained the 24-word recovery phrase. Unfortunately, the victim never changed that recovery phrase.
Later, without authorization, he used the correct recovery phrase to transfer and potentially steal all the coins. The defendant was not authorized to move the coins and gave false statements.
The Higher Regional Court of Braunschweig concluded that the defendant did not “hack” the wallet, since he used passwords he had legitimately set up and retained.
Therefore, the action did not satisfy the requirement of “overcoming a special access security” as defined under Germany’s Criminal Code.
Furthermore, the court ruled there was no deception involved, rejecting charges of computer fraud.
Blockchain systems, the court said, do not assess user intent or permission. It only affirms the presence of a valid cryptographic signature. The court also dismissed claims of data tampering.
This means that as long as someone has a valid password or recovery phrase—regardless of how they obtained it—transferring assets may not count as a crime, at least under current German law.
The court noted that while the conduct may violate civil obligations, contract breaches, or broken trust, do not automatically qualify as criminal offenses.
However, the ruling does not suggest that all crypto theft is legal. If credentials were obtained through fraud or hacking, different charges could apply. But this case centered specifically on non-technical access using pre-existing, known credentials.
For now, the judgment exposes a gray area that German lawmakers have yet to address.
The past week has seen a notable surge in crypto trading activity, fueled by improving market sentiment and investor confidence. This uptick is reflected in the 3% increase in the global crypto market capitalization over the last seven days.
As attention returns to altcoins, several lesser-known tokens have emerged as standout performers. According to Coingecko’s data, here are three top gainers to keep an eye on for the third week of July:
Epic Chain (EPIC)
EPIC has surged by 155% over the past week and is currently trading at $2.50. On the daily chart, the altcoin’s Elder-Ray Index has consistently printed prominent histogram bars over the last four days, indicating strong accumulation by market participants.
The indicator stands at 2.28 at press time, reflecting sustained bullish momentum.
The Elder-Ray Index measures the strength of bulls and bears in the market by analyzing the difference between an asset’s price and its exponential moving average (EMA). A positive Elder-Ray reading occurs when the bulls are dominant, meaning the price is trading above the EMA, indicating strong buying momentum.
This suggests that EPIC buyers are in control and may continue to push prices higher in the short term. In this scenario, the altcoin could rally above $2.63.
However, if demand plunges, EPIC could reverse current gains and fall to $2.21.
Mango Network (MGO)
Layer-1 (L1) coin MGO is another top gainer to watch this week. Trading at $0.0272 at press time, the altcoin is up by 128% over the past week.
MGO’s triple-digit rally today has pushed its price above the 20-day exponential moving average (EMA). This key moving average now forms dynamic support below the token’s price at $0.017.
The 20-day EMA measures an asset’s average price over the past 20 trading days, giving weight to recent prices. When price trades above the 20-day EMA, it signals short-term bullish momentum and suggests buyers are in control.
MGO could extend its rally to trade at $0.029 if this continues.
However, if profit-taking resumes, the coin’s price could fall below $0.026.
ZORA
ZORA is one of the top crypto gainers to watch this week. At press time, the token trades at $0.0211, up by almost 90% in the past seven days.
Over the past 24 hours, ZORA has noted 40% gains. During the review period, the token’s trading volume surged by 293%, reaching $161.17 million. The increase in the token’s price and trading volume indicates strong bullish momentum and heightened investor interest.
This trend suggests that market participation is backing the price rally. If it continues, ZORA’s price could breach $0.0215 and climb toward $0.0253.
Once seen as fringe experiments, Bitcoin treasury companies are now central players in the digital asset market. Modeled after pioneers like MicroStrategy, these firms pile Bitcoin onto their balance sheets, straddling the line between operating businesses and crypto investment trusts.
Also, momentum has accelerated in recent months in Asia, drawing the attention of investors, regulators, and corporate boards. The key question is whether treasuries can survive rising regulatory scrutiny or collapse under mounting risks.
Bitcoin Treasury Firms Grew From 70 to 134 This Year
Why It Matters: Bitcoin has already entered the mainstream of corporate finance. In the first half of 2025, the number of public companies holding BTC doubled. According to K33 Research, the number of public firms with Bitcoin treasuries rose from 70 to 134 between December 2024 and June 2025, acquiring a combined 244,991 BTC. Eight Japanese firms appear to have adopted the strategy, signaling that Asia has moved from bystander to active participant. This rapid expansion raises fundamental questions about oversight, stability, and survival.
Identified Public Companies with BTC treasury strategy. Source: K33
Latest Developments: Recent headlines highlight Asia’s role. The Financial Times reported that American Bitcoin, a US miner backed by Donald Trump Jr. and Eric Trump, is scouting acquisitions in Japan and Hong Kong. The goal: build Asian versions of MicroStrategy-style treasury companies. This could be an opportunity for Asia’s markets to gain exposure to a new asset class, but without regulatory guardrails, the risks of volatility and instability rise.
At the same time, the Asia-Pacific Economic Cooperation (APEC) issued its July 2025 Digital and AI Ministerial Statement. Leaders from 21 member economies pledged to strengthen trust and safety in digital ecosystems. While the statement did not name treasury firms specifically, it stressed the need for robust policy frameworks around emerging digital finance models. APEC’s direction signals a trend toward closer supervision for companies now holding thousands of BTC on their balance sheets.
What Treasury Companies Do
Background: As explained by the BitMEX Blog, treasury companies typically sign advisory agreements with specialized managers, raise capital in public markets, and deploy proceeds into Bitcoin. They promise exposure to BTC without requiring investors to manage custody or trading. This appeals to institutions and retail investors but creates risks, since leverage, accounting treatment, and governance standards vary widely.
MicroStrategy pioneered the strategy in 2020, first framing BTC as an inflation hedge, later evolving into a dedicated treasury firm. Tesla briefly followed, while Japan’s Metaplanet adopted the model in 2023. Today, dozens of microcaps worldwide have launched similar strategies. Amina Group estimates that public companies hold nearly 962,000 BTC, worth more than $110 billion.
Is Bitcoin Treasury Dangerous? How?
Deeper Analysis: The crypto market reached nearly $4 trillion in July 2025. Bloomberg attributed the growth to regulatory progress and investor optimism. However, Reuters stressed that retail still dominates spot Bitcoin ETFs and trading activity while institutional participation grows.
BeInCrypto has reported that public companies have accelerated Bitcoin acquisitions in 2025, often financing them through equity and debt issuance. This has lifted BTC’s price and stock valuations in the bull run. Yet experts warn the same strategies may turn dangerous in a downturn. Heavy reliance on convertible debt, with a $12.8 billion maturity wall by 2028, exposes firms like MicroStrategy and Marathon Digital to refinancing risk.
Analysts note that when debt ratios exceed 30%, even a 20% drop in Bitcoin can trigger defaults. Some argue institutions add discipline and long horizons, but BeInCrypto highlighted that shareholder pressure and quarterly results may force these companies to sell in bear markets, amplifying volatility.
Calculating Equity Premium to BTCNAV. Source: Galaxy Research
Another layer of risk lies in the premiums to net asset value (NAV) at which many treasury companies trade. Galaxy Research explained in July 2025 that shares of firms such as Metaplanet and The Blockchain Group have traded at 200–300% above the per-share value of their BTC holdings. Investors pay these premiums for exposure to Bitcoin and access to capital-raising engines like at-the-market (ATM) equity programs.
These allow firms to issue shares at prevailing prices, buy more BTC, and still grow BTC per share, creating a self-reinforcing loop. MicroStrategy, rebranded as Strategy, has mastered this playbook, raising billions since 2020 to amass nearly 600,000 BTC.
The danger comes if premiums collapse. If a company’s stock trades near its NAV, new equity issuance no longer enhances BTC per share but dilutes it. VanEck’s Matthew Sigel noted, “Once you are trading at NAV, shareholder dilution is no longer strategic. It’s extractive.”
This cycle—premiums support capital raises, which fund BTC purchases, which reinforce the narrative—can unravel quickly. Should valuations slip to NAV or below, capital dries up, growth stalls, and the narrative that fueled premiums weakens. For now, treasury companies benefit from investor enthusiasm. Still, the model’s sustainability depends on financial discipline, transparency, and the ability to grow BTC per share rather than accumulating more coins.
Its Impact Will Not Be Small
Behind the Scenes: Motives for joining the boom vary. Some firms see Bitcoin as a way to tap capital markets. American Bitcoin’s planned entry into Asia shows how US political influence intersects with financial hubs eager for new products. Others, particularly microcaps, use the “treasury” label to attract speculative investors. Regulators see uncomfortable echoes of past bubbles in this mix of hype and leverage.
APEC economies also differ in their risk appetite. Japan and Singapore emphasize compliance and transparency. Hong Kong is a strict gateway between mainland China and global markets. Emerging Southeast Asian economies remain more experimental, leaving space for treasury firms to operate in regulatory gray zones.
Broader Impact: If treasury companies succeed in Asia, their impact could ripple across industries. Corporations could access new financing channels, with balance sheets acting like quasi-ETFs. Traditional banks may face competitive pressure as firms bypass conventional markets. However, volatility could erode trust if stock prices diverge too far from the underlying Bitcoin value.
For ordinary investors, listed treasury firms mean indirect exposure to Bitcoin. Employees may find their stock-based compensation tied to BTC cycles, linking household finances to crypto’s volatility.
Essential Facts:
Bitcoin treasury firms nearly doubled in H1 2025, from 70 to 134.
Collectively, they purchased 244,991 BTC in that period.
Eight Japanese firms, along with dozens in North America and Europe, now hold BTC on balance sheets.
Amina Group estimates 962,000 BTC are held by public companies, worth over $110 billion.
APEC emphasized “trust and safety” in digital ecosystems.
It May Encourage Excessive Risk-taking
Looking Forward: APEC’s subsequent ministerial meetings may address treasury companies more directly. Regulators in Japan and Singapore are expected to clarify accounting and investor protection standards. Hong Kong will likely expand disclosure requirements for new listings. Meanwhile, BeInCrypto recently noted that Japanese corporates diverge: Remixpoint has expanded its BTC holdings, while Value Creation has exited entirely. Such differences highlight the diversity of strategies in Asia and the uncertainty over which approach will prevail.
Historical Perspective: MicroStrategy’s entry in 2020 triggered the first wave, followed by Tesla. Asia’s moment came with Metaplanet in 2023. By 2025, the scale dwarfed earlier phases: twice as many companies, hundreds of thousands more Bitcoin acquired, and debate elevated to ministerial levels. Yet risks remain reminiscent of 2021’s retail-driven bubble, where price momentum overwhelmed fundamentals.
Risks:
Sharp BTC price drops could damage balance sheets.
Overleveraging may drive firms into insolvency.
Stock valuations diverging from NAV may hurt retail investors.
Blind “Saylorization” — copying MicroStrategy without discipline — risks backfiring.
Expert Opinion: The BitMEX Blog warns about structural conflicts, “Advisory agreements can create conflicts of interest, as managers may earn fees regardless of outcomes, encouraging excessive risk-taking.”
Matthew Sigel, head of digital assets research at VanEck, observed on X, “Bitcoin treasury companies may accelerate volatility by acting as forced sellers in downturns, amplifying price cycles.”
And BeInCrypto reported the potential risk of these companies in its August analysis, “Bitcoin treasury companies have already shown their capacity to trigger broader market sell-offs, shaking investor confidence and deepening bear markets.”
These insights underscore the dilemma: treasury firms can accelerate adoption and open capital markets to Bitcoin, but they also amplify risks. For Asia’s entrants, survival will depend on whether regulation evolves quickly enough to contain dangers while allowing innovation to thrive.
Cardano (ADA) is showing signs of life despite dropping 3% in the past 24 hours as traders weigh the possibility of a broader recovery. Technical indicators like BBTrend and DMI are flashing mixed signals, hinting that momentum may be fading after a brief surge.
ADA’s BBTrend has flipped into negative territory, while its DMI suggests bulls are gaining ground but haven’t fully taken control. With ADA hovering just above key support levels, the next few sessions will be crucial in determining whether this rally has legs or if another correction is around the corner.
ADA BBTrend Is Fading After Reaching Levels Above 5 Yesterday
Cardano’s BBTrend indicator has flipped into negative territory, currently sitting at -0.02 after reaching a positive peak of 5.28 just a day earlier.
The BBTrend (Bull and Bear Trend) indicator measures the strength and direction of a price trend. Values above +1 typically indicate a strong bullish trend, while readings below -1 signal a strong bearish trend.
For Cardano, this neutral-to-negative reading could mean that upward momentum is fading, increasing the risk of further downside if selling pressure builds in the coming sessions.
Cardano DMI Shows Buyers Are Almost Taking Control
Cardano’s DMI (Directional Movement Index) chart shows that its ADX, which measures trend strength, has dropped to 34.29 from 43.41 yesterday.
While this indicates that the current trend is weakening, the ADX is still well above the key 25 threshold, meaning the market remains in a strong directional move.
The ADX is part of the DMI system, which includes the +DI (positive directional index) and -DI (negative directional index).
The +DI has climbed from 4.68 to 19.19, showing growing bullish interest, while the -DI has sharply dropped from 44.92 to 22.18. This narrowing gap hints at a potential trend reversal or at least a slowing of bearish momentum.
However, since -DI is still slightly above +DI and ADX remains elevated, ADA is technically still in a downtrend — though bulls may be starting to regain some ground.
Is Cardano Getting Ready For A Recovery?
Cardano price is currently attempting a recovery after dipping below the $0.52 mark, a key support level in recent weeks. If buyers manage to confirm their strength and sustain upward momentum, ADA could first test resistance at $0.629.
A successful breakout above that could open the path toward $0.70, and if bullish pressure continues, a further rally to $0.77 may be on the table — levels not seen since early 2024.
However, if ADA fails to hold its current ground and bearish momentum returns, the token risks sliding back below $0.52.
A move toward $0.51 would be the first critical test, and losing that level could push Cardano below the $0.50 threshold for the first time since November 2024.
