The South Korean Supreme Court rules that Bitcoin from exchanges can be lawfully seized and officially incorporated into criminal law.

South Korea’s Supreme Court has ruled that Bitcoin within exchange platforms can be lawfully seized, ending legal disputes and completing the criminal procedure, fully integrating digital assets into the criminal law system.

Supreme Court Clarifies that Bitcoin Can Be Lawfully Seized

According to The Chosun Ilbo, the South Korean Supreme Court recently made a pivotal ruling, clearly stating that Bitcoin stored in cryptocurrency exchange accounts qualifies as assets that can be lawfully seized, officially ending the long-standing legal debate over whether “digital assets are subject to seizure under criminal law.”

The case originated from a money laundering investigation. During the investigation, police seized 55.6 Bitcoins from an exchange account linked to a suspect identified only as “A某,” with a market value of approximately 600 million Korean won, about 413,000 USD at the time.

A某 subsequently filed an appeal, arguing that under Article 106 of the Criminal Procedure Act, the object of seizure is limited to “tangible objects,” and since Bitcoin is purely digital information and not a physical item, it should not be considered a lawful target for seizure.

After the Seoul District Court dismissed this claim, the case was appealed all the way to the Supreme Court. Ultimately, the Supreme Court supported the prosecution’s position, recognizing that seizure targets in criminal procedures include not only physical objects but also electronic information with economic value and disposability.

“Having Economic Disposability” Becomes Key, Digital Assets Included in Criminal Law System

The Supreme Court stated in its ruling that, although Bitcoin is not a physical entity, it qualifies as “an electronic token that can be independently managed, traded, and possesses substantial economic value,” meeting the core criteria of assets under criminal law.

The court emphasized that excluding digital assets from seizure solely because of their digital nature would create significant loopholes in tracking and confiscating criminal proceeds, which clearly contradicts legislative intent.

This ruling essentially confirms that “cryptocurrency assets within exchanges” and bank deposits hold similar legal status under criminal law. For law enforcement, as long as they can demonstrate a connection between the assets and criminal activity, they can lawfully apply for seizure, preventing suspects from transferring or hiding illegal gains through digital assets. This also means that cryptocurrency exchanges will increasingly be required to cooperate in freezing, transferring, or securing user assets during judicial investigations.

Building on Existing Precedents, South Korea’s Crypto Regulation Moves Forward

In fact, South Korean courts have not been the first to clarify the nature of digital assets.

• As early as 2018, the Supreme Court recognized Bitcoin as “intangible property with economic value,” which can be confiscated upon establishing a crime; the same year, the court also regarded crypto assets as divisible property in divorce cases.
• In 2021, related rulings further confirmed that Bitcoin qualifies as virtual property recognized by criminal law.

This recent ruling adds the final piece to the legal puzzle at the procedural level, enabling the full application of seizure, confiscation, and recovery mechanisms to exchange platform assets. Given South Korea’s high cryptocurrency adoption rate—with over 16 million exchange accounts by 2025—this decision is seen as highly impactful in practical terms.

The public generally believes that in future cases involving fraud, money laundering, or other economic crimes, crypto assets will no longer be a legal gray area but will be fully incorporated into the criminal responsibility and property disposition system. This will have profound effects on market compliance and user risk awareness.

This article is a compilation of information summarized by Crypto Agent, reviewed and edited by “Crypto City.” It is still in the training phase and may contain logical biases or inaccuracies. The content is for reference only and should not be considered investment advice.