In brief
- South Korea’s Supreme Court ruled that Bitcoin held in exchange accounts is subject to seizure under the Criminal Procedure Act.
- The decision arose from a money laundering case involving 55.6 Bitcoin seized by police in 2020.
- The ruling aligns with previous rulings in the country, which has a high rate of crypto ownership.
South Korea’s Supreme Court has ruled that Bitcoin held on cryptocurrency exchanges can be seized under the country’s Criminal Procedure Act, closing a legal challenge brought by a suspect in a money laundering investigation.
The decision, first reported by Chosun Daily, confirms that digital assets stored on exchanges qualify as seizure targets during criminal investigations, even though they do not exist in physical form.
South Korea has one of the highest rates of cryptocurrency ownership globally. As of March 2025, more than 16 million people—roughly a third of the population—held crypto accounts at major domestic exchanges.
The case stemmed from a police seizure of 55.6 Bitcoin, worth about 600 million Korean won ($413,000) at the time, from an exchange account held by an individual identified only as Mr. A. The assets were taken as part of a money laundering investigation.
Mr. A later filed a motion for reconsideration, claiming that Bitcoin held in an exchange account could not be seized because it was not a “physical object” under Article 106 of the Criminal Procedure Act. That provision allows authorities to seize evidence or items subject to confiscation if they are recognized as being related to a criminal case.
The Seoul Central District Court dismissed the motion, ruling that the seizure was lawful. Mr. A then filed a further appeal to the Supreme Court in December.
In its final ruling, the Supreme Court rejected the argument that Bitcoin falls outside the scope of seizure law. “Under the Criminal Procedure Act, seizure targets include both tangible objects and electronic information,” the court said, according to Chosun Daily.
The court added that Bitcoin, “as an electronic token with the ability to be independently managed, traded, and substantially controlled in terms of economic value,” qualifies as an asset that can be seized by courts or investigative agencies.
“The disposition in this case, which seized Bitcoin under Mr. A’s name managed by a virtual asset exchange, is lawful, and there is no error in the lower court’s decision to dismiss the motion for reconsideration,” the ruling said.
The decision is consistent with a series of earlier South Korean court rulings that have treated cryptocurrencies as property or assets. In 2018, the Supreme Court held that Bitcoin is an intangible property with economic value and can be confiscated if obtained through criminal activity. That same year, crypto tokens were recognized as divisible assets in divorce proceedings.
In 2021, the court further clarified that Bitcoin constitutes a virtual asset that embodies economic value, and is considered a property interest under criminal law.
Other jurisdictions have taken similar approaches, classifying digital assets as property for legal and enforcement purposes.
Last month, the UK passed legislation formally recognizing digital assets as property, giving them the same legal status as traditional forms of property. The law aims to provide clearer guidance for courts handling cases involving theft, inheritance, and insolvency related to crypto assets.
The UK legislation builds on recommendations from the Law Commission of England and Wales and provides statutory backing to legal principles that had previously developed through common law.
Such measures are intended to improve clarity and enforcement in cases involving digital assets, particularly where criminal proceeds and asset recovery are concerned.
Etay Katz, head of digital assets at law firm Ashurst, told Decrypt at the time that the law was “a welcome and timely statutory recognition of the fundamental property quality in crypto assets.”
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
