TLDR
- South Korea’s supreme court confirmed Bitcoin held in virtual asset exchanges can be legally seized under the Criminal Procedure Act.
- The ruling involved a re-appeal related to Bitcoin held by a money laundering suspect.
- The court stated Bitcoin, as an electronic token, can be controlled via private keys, making it subject to seizure.
- This decision builds on the 2018 ruling that Bitcoin is an intangible asset with property value.
- Legal experts predict this ruling will influence future investigations, trials, and virtual asset legislation.
The South korea’s supreme court recently ruled that Bitcoin held by virtual asset exchanges like Upbit and Bithumb can be seized under the Criminal Procedure Act. According to a report by Chosun Daily, this ruling, issued on December 11th, marks the first time that the court confirmed the legality of seizing personally owned Bitcoin.
South Korea Supreme Court Confirms Seizure of Bitcoin
On December 11, 2025, the supreme court’s Second Division ruled on a re-appeal regarding the seizure of Bitcoin. The case involved Mr. A, who had Bitcoin worth 600 million won in an exchange account and was under investigation for money laundering.
Mr. A had appealed against the seizure, arguing that Bitcoin in exchange accounts is not subject to confiscation under the Criminal Procedure Act. The court found that Bitcoin, being an electronic token with economic value, could be controlled by its holder through a private key.
It stated that, under the Criminal Procedure Act, Bitcoin is subject to seizure by courts or investigative agencies, just like tangible assets. The court ruled that the previous decision to dismiss the quasi-appeal was correct, confirming that Bitcoin held in exchange accounts could be lawfully seized.
Legal Precedent Set for Future Seizures of Virtual Assets
In its 2018 ruling, the Supreme Court already determined that Bitcoin is an intangible asset with property value and can be confiscated. The latest decision builds upon this, clarifying the legal status of Bitcoin stored in virtual asset exchanges.
Legal experts have stated that this ruling will help resolve practical questions regarding the seizure and search of exchanges during investigations. This ruling also marks an important clarification in the legal nature of coins stored and traded on virtual asset exchanges.
“This decision clearly clarifies the legal nature of coins stored and traded on virtual asset exchanges,” said a lawyer familiar with virtual asset litigation. The decision is expected to provide guidance for future cases involving the seizure of virtual assets in criminal investigations.
The post South Korea Court Rules Bitcoin Held by Virtual Asset Exchanges Can Be Seized appeared first on Blockonomi.
Source: https://blockonomi.com/south-korea-court-rules-bitcoin-held-by-virtual-asset-exchanges-can-be-seized/
