⚖️ South Korea Greenlights Bitcoin Seizures from Exchanges: A Major Legal Precedent
The Supreme Court of South Korea has settled the debate over the status of cryptocurrency in criminal cases. Police now have the legal authority to seize BTC from exchange accounts during the investigation stage.
What happened?
The ruling stems from the case of user "A," suspected of money laundering. In 2020, police froze 55.6 BTC on his exchange account. The defense argued that since crypto is not a "physical object," it shouldn't be subject to standard criminal seizure laws.
The Court's Verdict:
The court rejected the appeal, stating:
Electronic information is equivalent to seizable property.Bitcoin is a digital token with economic value that can be managed and transferred.Therefore, assets on exchanges (like Upbit or Bithumb) are legitimate targets for seizure.
Why does this matter?
Legal Certainty: Law enforcement now has a clear mandate to block and seize funds immediately, rather than waiting for a final confiscation order.Legal Evolution: Korea is steadily tightening the net: BTC was recognized as an asset in 2018, subject to fraud laws in 2021, and now fully seizable property.
For the crypto community, this is another signal that the "gray area" era for major exchanges is ending. Large platforms will continue to integrate more closely with state legal frameworks.
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