Cryptocurrencies and NFT RugPulls
This episode explores crypto “rug pulls” from the perspective of German criminal law, asking whether such practices are merely unethical or criminally punishable.
Series 7 | Episode 1
Episode information
Duration: 13:12
Keywords: cryptocurrencies, fraud, deception, cross-border issues
After defining rug pulls and distinguishing them from ordinary project failures, Philip and Ron outline their typical development and highlights illustrative token and NFT examples. It then examines the applicability of German criminal law in cross-border cases where German investors suffer losses.
The legal analysis focuses on key offences, including fraud (§ 263 StGB), computer fraud (§ 263a StGB), and breach of trust (§ 266 StGB), addressing issues of deception, intent, smart contracts, and asset control.
The episode concludes by discussing enforcement challenges in decentralized and anonymous environments, emphasizing that decentralization does not equate to immunity from criminal liability.
