Huoxing Finance reports that the Licheng District Procuratorate in Qingdao, Shandong Province, recently handled a Bitcoin theft case. The defendant, Zhang XX, obtained the recovery phrase while assisting an acquaintance in registering a cryptocurrency wallet, and subsequently transferred 107 BTC in multiple transactions, equivalent to over RMB 50 million at current market prices. Zhang claimed his actions constituted a “protective takeover,” but prosecutors found that he had moved the stolen BTC through multiple exchanges and converted them into RMB 660,000. The Licheng District Court sentenced Zhang to 10 years and 9 months in prison and imposed a fine of RMB 100,000 in its first-instance ruling; the appellate court upheld the original judgment. According to the report, the prosecuting attorney, strictly adhering to legal principles and judicial policies, concluded that although China’s regulatory framework denies virtual currencies legal tender status, it does not deny their property attributes or prohibit citizens from lawfully holding or transferring them. Bitcoin requires substantial computational power and financial investment to acquire, conferring economic value; owners can exercise exclusive control through private keys and recovery phrases, meeting the core characteristics of “property” under criminal law and thus qualifying as an object of theft. Regarding the valuation of the stolen amount, since virtual currencies lack official pricing, the Licheng District Procuratorate rejected market price estimates and instead used the actual proceeds from the disposal of the stolen assets—RMB 660,000—as the theft amount, ensuring accurate conviction, appropriate sentencing, and consistency between the crime, its severity, and the punishment.
Chinese man steals 107 BTC from acquaintance while assisting with wallet registration, sentenced to 10 years and 9 months
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Summary
A man from Qingdao, China, was sentenced to 10 years and 9 months for stealing 107 BTC from an acquaintance while assisting with the registration of a virtual currency wallet. Zhang obtained the mnemonic phrase and transferred the BTC across multiple transactions, converting approximately RMB 660,000. The court ruled the act constituted theft, affirming that BTC—even without legal tender status—is still classified as property under criminal law, including when used as a hedge against inflation. The case also raised concerns regarding counter-financing of terrorism due to the large-scale illicit transfer.
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