South Korea's Supreme Court rules that Bitcoin on exchanges can be confiscated, marking a new phase in cryptocurrency enforcement

As we enter 2026, South Korea’s cryptocurrency regulation reaches a critical judicial milestone. According to reports from Chosun Ilbo, the South Korean Supreme Court recently issued a landmark ruling, explicitly affirming that Bitcoin stored in accounts on domestic cryptocurrency exchanges falls within the scope of assets that can be lawfully seized and confiscated. This is the first time the highest judicial authority in South Korea has provided a clear answer regarding “whether Bitcoin within exchanges can be confiscated,” ending a long-standing legal gray area.

The ruling was made on December 11, 2025, and the core dispute originated from a money laundering investigation. During the investigation, law enforcement agencies seized approximately 55.6 Bitcoins, involving about 600 million Korean won. The suspect argued that Bitcoin, as a digital record within an account, does not constitute “tangible property” that can be seized under the Criminal Procedure Act. However, the court ultimately dismissed this claim.

In its decision, the Supreme Court pointed out that objects permissible for seizure under the Criminal Procedure Act are not limited to tangible items but also include electronic information that can be managed independently, has clear economic value, and can be substantially controlled by individuals. The court emphasized that Bitcoin, controlled via private keys, is similarly subject to disposability and tradability within trading platforms, thus meeting the legal standards for property confiscation in criminal cases.

This ruling is not an isolated development but continues the judicial stance established earlier. As early as 2018, South Korea’s Supreme Court confirmed that Bitcoin qualifies as an intangible asset with economic value. In a related ruling in 2021, virtual assets were officially recognized as protected property rights in fraud cases. This latest decision further clarifies their enforceability within criminal proceedings.

While the judiciary clarifies the legal status, regulators are also advancing the upgrade of enforcement tools. South Korea’s financial regulators are studying the introduction of mechanisms similar to the securities market’s “account freezing” system to prevent involved crypto assets from being rapidly transferred to personal wallets or overseas platforms before cases are filed or prosecuted. Industry insiders note that once assets leave regulated platforms, tracking and enforcement become significantly more difficult.

On the enforcement front, South Korea continues to tighten compliance scrutiny of the crypto industry. Several domestic platforms have been fined heavily for anti-money laundering and internal control issues, and the industry as a whole faces stricter regulatory constraints.

Legal experts generally believe that this Supreme Court ruling provides a clear judicial basis for subsequent virtual asset cases, significantly enhancing South Korea’s enforcement efficiency in the cryptocurrency field. It also marks a comprehensive recognition of the property attributes of digital assets like Bitcoin within the legal system.