The Supreme Court of South Korea has for the first time deemed the seizure of bitcoins from exchange wallets in criminal cases as legal. Local media reports this development.
Previously, only the confiscation of assets for the benefit of the state was permitted.
The case involved a user known as "A," who is suspected of money laundering. In January 2020, police seized 55.6 BTC (approximately 600 million won at the time) from his exchange account.
The defense filed a complaint, arguing that cryptocurrency in platform accounts is not a physical object. According to the lawyers, it does not fall under the provisions of the Criminal Procedure Code regarding the seizure of physical evidence.
The court rejected this argument and upheld the legality of the investigators' actions. The ruling stated that objects of seizure include not only tangible items but also electronic information.
The judges classified bitcoin as an electronic token with economic value. The owner can manage and transfer it, making the asset a legitimate target for law enforcement seizure.
Legal experts believe this verdict removes legal ambiguity.
Now, investigators have a clear basis for blocking funds on exchanges like Upbit and Bithumb during the investigation phase.
It is worth noting that in 2018, the Supreme Court of Korea recognized digital gold as an asset subject to confiscation, and in 2021, expanded fraud laws to include cryptocurrencies.