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South Korea’s Top Court Says Bitcoin on Exchanges Can Be Seized

The decision clarifies law enforcement powers to freeze assets held at domestic platforms.

Overview

  • The Supreme Court affirmed that Bitcoin custodied by regulated exchanges qualifies as seizable property under the Criminal Procedure Act.
  • The ruling stems from a 2020 money‑laundering probe that seized 55.6 BTC from an exchange account, with the suspect’s final appeal rejected on December 11, 2025.
  • Judges held that Bitcoin is an electronic token that can be independently managed and economically controlled in practice through private keys.
  • Prosecutors and police now have a clear basis to order freezes and transfers of suspect crypto from exchanges, which must comply when proper procedures are followed.
  • The precedent builds on 2018 and 2021 decisions recognizing crypto as property and comes as regulators consider preemptive freezes and advance Phase 2 rules, with significant impact in a market of over 16 million exchange accounts.