South Korea’s top court says exchange‑held Bitcoin can be seized 

South Korea’s Supreme Court has handed down its archetypal explicit ruling that Bitcoin held successful centralized exchanges tin beryllium seized by investigators, marking a notable displacement successful however exchange‑custodied crypto is treated nether transgression law. 

In a determination connected Dec. 11, 2025, and disclosed via the court’s authoritative bulletin, the tribunal upheld the seizure of 55.6 Bitcoin (BTC) held successful a Korean speech relationship by a fishy nether a money laundering investigation.

Bitcoin is present an “object of seizure” nether the Criminal Procedure Act due to the fact that it is physics accusation with autarkic manageability, tradability, and economical value. 

The ruling builds connected earlier Supreme Court precedents that recognized Bitcoin arsenic confiscable transgression proceeds and arsenic a “property interest” susceptible of being the entity of fraud, but goes further by squarely addressing assets stored successful exchange custodial wallets, mounting a precedent for aboriginal investigations and authorities involving integer assets.

Supreme Court Ruling. Source: Court of Korea

The determination means Korean users who support BTC connected platforms similar Upbit and Bithumb present look clearer ineligible exposure. Coins linked to alleged crimes tin beryllium frozen and seized straight astatine the venue, and exchanges volition travel nether stronger unit to comply swiftly with warrants and support robust Know Your Customer (KYC) and tracing systems. 

Related: Bitcoin ETF momentum builds successful South Korea arsenic regularisation lags behind

Ruling aligns with planetary crypto‑seizure practice

This trajectory is broadly successful enactment with practices successful the United States and European Union, wherever authorities already usage seizure and forfeiture tools to instrumentality power of Bitcoin and different crypto held with centralized intermediaries successful transgression cases. 

The Supreme Court’s determination besides comes arsenic fiscal regulators see going a measurement further connected the administrative side. 

The South Korean Financial Services Commission is reviewing a connection to allow pre‑emptive freezes of crypto accounts suspected of market manipulation, akin to existing measures successful the banal market, which would fto authorities artifact withdrawals and transfers earlier a tribunal bid if they observe tactics specified arsenic wash trading oregon pre‑programmed pump‑and‑dumps.

​At the aforesaid time, the authorities is preparing “Phase‑2” integer plus authorities nether its 2026 Economic Growth Strategy, including an authorization authorities and reserve rules for stablecoin issuers, a model for cross‑border stablecoin transfers, and a program to present spot integer asset exchange-traded funds to amended marketplace access.