- January 9, 2026
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post South Korea Supreme Court Confirms Bitcoin Held on Exchanges Is Seizable Under Law appeared first on Coinpedia Fintech News
South Korea’s Supreme Court has delivered a decisive ruling that removes lingering legal uncertainty around cryptocurrencies held on centralized exchanges. In a landmark judgment, the court confirmed that Bitcoin stored in exchange accounts can be lawfully seized under the Criminal Procedure Act, firmly placing digital assets within the scope of criminal enforcement.
This decision strengthens the legal footing for investigators handling crypto-related crimes and reflects South Korea’s increasingly mature approach to regulating digital assets in a country where crypto adoption is already widespread.
The Case That Triggered the Ruling
As per the report, the ruling stems from a money laundering investigation dating back to 2020. At the time, police seized 55.6 Bitcoin, worth roughly 600 million Korean won, from an exchange account belonging to an individual identified as Mr. A. The seizure was carried out as part of an ongoing criminal probe.
Mr. A later challenged the action, arguing that Bitcoin held on an exchange could not be seized because it is not a physical object, as traditionally required under Article 106 of the Criminal Procedure Act. After lower courts rejected this claim, the case reached the Supreme Court for final review.
Why the Court Rejected the Appeal
In its ruling, the Supreme Court made it clear that seizure laws are not limited to tangible items. The court stated that assets subject to seizure include electronic information and digital representations of value, not just physical property.
The judges emphasized that Bitcoin has clear economic value and can be independently managed, transferred, and controlled by its owner, even when held on an exchange. Because users retain effective control over their assets through account access and private key systems, the court ruled that Bitcoin qualifies as a legitimate seizure target during criminal investigations.
The court concluded that the original seizure was lawful and that there was no error in the lower courts’ decisions to dismiss Mr. A’s objections.
Consistency With Past Crypto Rulings
This judgment builds on a series of earlier South Korean court decisions that have steadily defined the legal status of cryptocurrencies. In 2018, the Supreme Court recognized Bitcoin as intangible property that could be confiscated if acquired through criminal activity. That same year, crypto assets were also treated as divisible property in divorce cases.
In 2021, the court further clarified that Bitcoin constitutes a property interest under criminal law, reinforcing its status as a legally recognizable asset.
Crypto Implications
Legal experts say the latest ruling removes practical uncertainty around seizing digital assets held on exchanges and will serve as a reference point for future investigations and trials. With over 16 million South Koreans holding crypto accounts, the decision provides regulators and law enforcement with clearer authority while signaling that crypto assets are not beyond the reach of the law.
Globally, the move aligns South Korea with other jurisdictions, such as the UK, that are formally recognizing digital assets as property. Together, these developments point to a growing international consensus: cryptocurrencies are no longer operating in a legal gray zone but are firmly part of the established legal and financial system.
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FAQs
Yes. The Supreme Court ruled Bitcoin on centralized exchanges can be seized under criminal law, even though it is a digital, not physical, asset.
Indirectly. While user protections remain intact for lawful activity, exchanges may strengthen monitoring and compliance systems to reduce legal and operational risks.
Courts are likely to rely on this ruling as precedent, reducing disputes over whether digital assets qualify for enforcement actions. This could shorten trial timelines in financial crime cases.
Not directly. The decision applies to assets held on centralized exchanges, though it may inform future legal debates around self-custody and enforcement limits.
