South Korea's Supreme Court Rules Bitcoin on Exchanges Can Be Seized Under the Criminal Procedure Act

According to the Korean media outlet Chosun Ilbo, South Korea's Supreme Court ruled for the first time on December 11 of last year that individuals' bitcoins held and stored at virtual asset exchanges such as Upbit and Bithumb can be subject to seizure under the Criminal Procedure Act. This case originated from a January 2020 incident in which police seized 55.6 bitcoins stored in a virtual asset exchange account belonging to a suspect under investigation for money laundering. The Supreme Court stated that according to the Criminal Procedure Act, seizure can apply to tangible objects and electronic information. As bitcoin is an electronic token with economic value that can be independently managed, traded, and substantially controlled, it qualifies as a subject of seizure by courts or investigative agencies. This ruling clarifies the legal nature of cryptocurrencies stored in virtual asset exchanges and confirms their legitimacy for seizure during investigations. It is expected to serve as a precedent for future investigations, trials, and legislation related to virtual assets.