A Legal Turning Point: Crypto Held on Exchanges Now Subject to Seizure in South Korea
On December 11, 2025, South Korea’s Supreme Court delivered a landmark ruling, affirming that Bitcoin held on centralized digital asset platforms qualifies as property eligible for seizure under criminal procedure laws. This decision reshapes the legal treatment of crypto assets and sets a binding precedent for future cases.
What Makes This Judgment Groundbreaking?
The court upheld the seizure of 55.6 Bitcoin linked to a money laundering suspect, emphasizing that digital assets held on custodial platforms exhibit independent control, transferability, and measurable economic value—key criteria for enforceable property under the law.
- Regulators can now legally freeze crypto tied to investigations
- Exchanges must respond swiftly to legal orders
- User holdings may face collateral freezes if linked to probes
With this ruling, user assets on major domestic platforms are now firmly within the scope of judicial oversight. Service providers will face heightened pressure to maintain rigorous KYC protocols and real-time transaction monitoring systems.
Analysts view this as a pivotal step toward a mature digital asset legal framework, likely accelerating the integration of blockchain intelligence into law enforcement workflows.