Bitcoin Qualifies as Seizure Target Under Criminal Procedure Law

Judge Lee Seok-jun of the Suncheon Branch of Gwangju District Court analyzed a Supreme Court ruling on January 1st, 2025, determining that Bitcoin qualifies as electronic information subject to seizure under criminal procedure law. The Supreme Court established that Bitcoin, as a digital asset, possesses independent manageability, transferability, and substantial control over economic value, making it subject to seizure by courts and investigative agencies. Bitcoin's legal status has been a major research topic in academia, with scholars debating both its classification as property under civil law and its treatment under criminal procedure law.

Supreme Court's Ruling on Bitcoin

The Supreme Court determined that Bitcoin constitutes an electronic record capable of seizure by law enforcement and judicial authorities. The Court identified three key characteristics: independent manageability, the ability to be transferred, and substantial control over economic value. Bitcoin transfers ownership through private key possession, meaning control and disposal rights change hands with the keys.

Judge's Analysis Framework

Judge Lee Seok-jun grounded his analysis in a 2011 Supreme Court decision establishing that electronic information seizure requires collecting relevant portions as document printouts or copying files to storage media. This principle was later codified in Criminal Procedure Act Article 106(3). The judge noted that "electronic information is already treated as a seizure target in practice under criminal procedure law."

Applying this framework, the judge concluded Bitcoin qualifies as electronic information because it represents economic value digitally without physical form, and can be transferred, stored, and traded electronically. Bitcoin uses blockchain technology to record and store transactions across network participants' blocks, functioning as digital information similar to other electronic data.

Scope of Seizure and Manageability

The judge determined that Bitcoin possesses management capability and exclusive control possibility since it can be transferred to others within the blockchain system. Digital assets with properties similar to Bitcoin also qualify as seizure targets. The same legal principles apply to Bitcoin held by virtual asset service providers, extending the seizure framework beyond individually held cryptocurrency to institutionally custodied digital assets.