South Korea Confirms Bitcoin on Exchanges Can Be Seized in Criminal Cases

Highlights:

• South Korea’s Supreme Court confirms that Bitcoin on exchanges can be legally seized in investigations.
• Authorities confiscated 55.6 Bitcoin worth 600 million won during a money laundering probe.
• The decision strengthens the recognition of digital assets as lawful property under South Korean law.

South Korea’s Supreme Court ruled that Bitcoin on cryptocurrency exchanges can be seized in criminal cases. The case began after authorities seized 55.6 Bitcoin, worth approximately 600 million Korean won ($413,000), from an account linked to a man identified as Mr. A.

Supreme Court Confirms Bitcoin as Seizable Property in South Korea

The seizure was part of a money laundering investigation. Mr. A argued against it, saying Bitcoin is not a physical object and cannot be seized under Article 106 of the Criminal Procedure Act. That law allows authorities to take items connected to crimes. First, the Seoul Central District Court rejected Mr. A’s challenge and allowed the seizure. Later, in December, Mr. A appealed to the Supreme Court. Finally, the Supreme Court confirmed that digital assets on exchanges can be legally seized.

🇰🇷S. KOREA: BITCOIN ON EXCHANGES CAN BE SEIZED

The South Korean Supreme Court ruled that Bitcoin held on crypto exchanges is subject to seizure under criminal law. pic.twitter.com/zcergQAYo7

— Coin Bureau (@coinbureau) January 8, 2026

According to Chosun Daily, the Supreme Court said that the Criminal Procedure Act allows seizure of both tangible objects and electronic information. The court also noted that authorities can seize Bitcoin because people can independently manage, trade, and control it. “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.

South Korea has one of the highest cryptocurrency ownership rates in the world. By March last year, over 16 million people had accounts at major domestic exchanges. This is about a third of the population. It shows how digital assets are becoming important in everyday finance. The ruling clearly allows authorities to seize cryptocurrencies during investigations. It strengthens their enforcement tools and treats digital assets like traditional property.

Courts Worldwide Treat Bitcoin Like Regular Assets

The decision follows earlier rulings. In 2018, the Supreme Court ruled that Bitcoin is an intangible property with economic value, which can be confiscated if obtained through criminal activity. That same year, courts treated crypto tokens as divisible assets in divorce proceedings. In 2021, South Korean courts said Bitcoin is a virtual asset with economic value. They confirmed it counts as a property interest under criminal law. Other countries have also started recognizing digital assets as legal property.

Other countries have adopted similar measures to define digital assets as property for legal purposes. Last month, the UK passed legislation formally recognizing cryptocurrencies as property, giving them the same legal status as traditional forms of property. The UK law guides courts in cases involving theft, inheritance, and insolvency linked to crypto assets. It follows recommendations from the Law Commission of England and Wales and provides statutory support for principles previously established under common law.

Update – this Bill is now on the way to the King's desk for Royal Consent and will shortly become law. See thread for some extra details👇

A hugely significant step for English law and for UK citizens who use Bitcoin.@bitcoinpolicyuk have been supporting this since the Law… https://t.co/ZbBdK59yZi

— Freddie New (@freddienew) December 2, 2025