TL;DR
- South Korea’s Supreme Court ruled Bitcoin held on exchanges can be seized in criminal investigations, rejecting a claim that only physical objects qualify.
- The court said seizure targets include tangible objects and electronic information, describing Bitcoin as a tradable electronic token with economic value.
- The decision follows earlier recognition of Bitcoin as intangible property and arrives amid crypto-crime enforcement, as the UK recognized digital assets as property.
South Korea’s Supreme Court has clarified that investigators may seize Bitcoin held on cryptocurrency exchanges during criminal probes, closing a dispute over whether digital assets qualify as confiscable property. The decision stems from a money laundering case involving an account holder identified only as Mr. A, whose exchange balance of 55.6 Bitcoin, valued at about 600 million won or $413,000 at the time, was taken by police. The ruling signals exchange custody does not shield crypto from seizure. Mr. A challenged it, saying the law covers only physical items and cannot reach data-only tokens there.
Supreme Court Defines Exchange-Held Bitcoin as Seizable Property
The fight turned on Article 106 of South Korea’s Criminal Procedure Act, which Mr. A said allows seizure only of “physical objects” for evidence or confiscation. A Seoul court rejected that reading and dismissed his complaint, prompting an appeal that reached the Supreme Court in December 2025. Top judges sided with prosecutors and wrote that seizure targets include both tangible objects and electronic information. They described Bitcoin as an electronic token that can be managed, traded, and controlled for economic value, so it meets the legal standard for assets investigators may take. Decision upheld it.
In explaining the outcome, the court said the “disposition” that seized Bitcoin managed by a virtual asset exchange under Mr. A’s name was lawful, and found no error in the lower court’s refusal to reconsider. The ruling also fits a longer judicial trend. In 2018, the Supreme Court recognized Bitcoin as intangible property with real economic value and said it can be seized when obtained illegally. Courts that year treated crypto as divisible in divorce cases, and by 2021 judges were clearly treating Bitcoin as virtual property under criminal law. Extending that logic to exchanges.
The decision lands as South Korean authorities intensify enforcement against crypto-related crimes, with high-profile fraud and money laundering cases drawing attention. One example cited in reporting involved a crypto exchange operator sentenced to four years in prison for attempting to sell military secrets to North Korea in exchange for Bitcoin. South Korea is not alone in tightening legal definitions. Last month, the UK passed legislation recognizing digital assets as property, giving them the same legal status as houses and cars, following Law Commission recommendations. Together, courts are translating “crypto” into enforceable property rights in practice.
