Wenzhou Court Disposes Virtual Currency Assets via Licensed Platform Setting Legal Precedent

China’s Wenzhou Court has completed the legal disposal of virtual currency assets involved in a criminal case through a licensed trading platform, marking a significant development in the judicial handling of digital assets. According to a report by BlockBeats, the court worked closely with law enforcement to identify a professional organization capable of handling and liquidating the seized digital assets. The assets included over 6,000 USDT coins, over 2,700 TRX coins, and 0.8 BNB coin, which were converted into nearly 50,000 yuan (RMB) after fees and transferred to a court-designated account via a secure channel operated by the Ministry of Public Security [1].

The case involved a defendant who used a counterfeit digital wallet app to steal virtual currency from victims between December 2022 and the time of the court’s disposal. The individual was found to have obtained 544 virtual coin addresses and keys, leading to significant financial losses for the victims [1]. In response, the court, through collaboration with the Lucheng Public Security Sub-bureau, engaged the Public Security Department’s Third Research Institute to identify a suitable disposal partner. The process involved rigorous verification of the disposal organization’s qualifications and the drafting of a detailed entrusted agreement outlining the responsibilities of each party, including detection, sale, and transfer of the assets [1].

Wang Zitai, a key participant in the disposal process, emphasized the importance of interdepartmental cooperation in handling such complex cases. He noted that the successful liquidation of the virtual currency aligns with the Supreme People’s Court’s recent guidance on the regulation of criminal asset execution, particularly Article 23 of the Opinions on Regulating the Execution of the Property-Related Part of Criminal Judgments. This case, Wang said, sets a precedent for the judicial system in dealing with emerging digital assets and demonstrates the potential for cross-domain collaboration in enforcing judgments involving virtual currencies [1].

The use of a licensed trading platform for the disposal process highlights the growing recognition of the need for legal and secure mechanisms to handle digital assets within the judicial framework. As internet-based crimes involving virtual currencies continue to rise, this case underscores the court’s proactive approach in adapting to new forms of assets and ensuring that victims can recover their losses through legitimate channels [1].

Source: [1] BlockBeats – The Wenzhou Court in China successfully disposed of the involved virtual currency through a licensed trading platform (https://www.theblockbeats.info/en/flash/306510)