Navigating the Legal Landscape of Lost or Stolen Cryptocurrency in Missouri and the U.S.

The world of digital currencies offers immense potential but also comes with its own unique risks, including the possibility of cryptocurrency loss or theft. This article explores the legal implications of lost or stolen cryptocurrency under the federal and Missouri laws.

Understanding Cryptocurrency Loss and Theft

Firstly, it's crucial to differentiate between cryptocurrency loss and theft. Loss typically refers to situations where individuals cannot access their digital assets due to reasons like misplaced private keys or forgotten passwords. Theft, on the other hand, involves unauthorized access and transfer of digital assets by hackers or fraudsters.

Federal Laws on Cryptocurrency Theft

While the federal law does not address cryptocurrency theft specifically, various legal principles apply. Under U.S. law, theft of any kind, including digital assets, can be prosecuted. Federal authorities, such as the FBI and the Department of Justice (DOJ), have pursued legal action in numerous instances of cryptocurrency-related crimes.

Further, the U.S. Commodity Futures Trading Commission (CFTC) views certain digital currencies as commodities, thus offering an additional layer of regulatory protection. Victims of theft may seek relief through the courts by demonstrating unauthorized access and control over their digital assets.

Missouri Laws on Cryptocurrency Theft

Missouri does not have specific laws addressing cryptocurrency theft. However, cryptocurrencies being a form of property, standard laws regarding theft and fraud are applicable to them.

Victims of cryptocurrency theft in Missouri can file a police report and might also have a claim in civil court for conversion - the legal term for when someone wrongfully uses the property of another.

Legal Implications of Lost Cryptocurrency

The legal landscape for lost cryptocurrency is less clear. Cryptocurrencies are often compared to cash; if you lose your wallet, there's not much legal recourse to get the lost money back.

Without specific regulations, individuals bear the responsibility for managing their digital keys, which is unlike traditional banking systems where lost or forgotten passwords can be reset.

Mitigation and Best Practices

To mitigate risks, it is crucial to adopt best practices for cryptocurrency storage, such as hardware wallets for large amounts and two-factor authentication for exchanges. Regularly updating your estate planning documents to provide instructions for digital assets is also advisable.


While the law continues to evolve, the current legal implications of lost or stolen cryptocurrency largely rest on the characterization of cryptocurrency as property. With rising cybersecurity threats and the irreversible nature of blockchain transactions, the need for robust legal and practical safeguards has never been more pressing.