South Korea Supreme Court: Bitcoin Held on Exchanges Can Be Seized
On Jan. 8, 2026 the South Korean Supreme Court upheld that bitcoin kept on cryptocurrency exchanges is subject to seizure under criminal law, dismissing the defendant’s appeal. The ruling confirms that assets held on custodial platforms can be treated as forfeitable property in criminal investigations and will serve as binding precedent for lower courts, clarifying a long‑standing legal question about custody and control. The decision matters because it strengthens law enforcement’s ability to freeze and claim exchange-held crypto, pushing exchanges to bolster compliance, record-keeping and rapid cooperation with prosecutors. Traders, institutional investors and retail users now face clearer custody risk, which may encourage more self-custody and prompt lawmakers and platforms to define stronger safeguards and due‑process procedures going forward.