Abstract Information regarding the provenance of papyrological material that was acquired in the Egyptian antiquities market in the late nineteenth and early twentieth centuries is scarce and often unreliable. This article investigates the provenance of Hamburg’s Papyrus Bilinguis 1, famed for containing the apocryphal Acta Pauli. By researching archival files documenting the acquisition and the context of the find, the papyrus is shown to have been acquired in breach of the Egyptian antiquities law of 1912. The article reveals how Carl Schmidt (1868–1938), the collector who acquired the manuscript for the Hamburg library, by concealing information, tried to cover up his own criminal involvement in the smuggling of the manuscript. Through the investigation of a manuscript that was acquired by a public German institution in awareness of its illegality, the article hopes to contribute to current debates on the translocation of cultural heritage artefacts to Europe and the US in the age of European colonialism and imperialism.