Chinese Court Rules Bitcoin is Property Under Criminal Law

A landmark ruling by a Chinese court has recognized Bitcoin as property under criminal law, paving the way for victims of cryptocurrency theft to seek justice. In the case, a man identified only by his surname Zhang was sentenced to 10 years and nine months in prison for stealing 107 BTC from an acquaintance.

The victim had entrusted Zhang with cashing out 117 Bitcoin in 2023, but during the process, Zhang memorized a 12-word seed phrase set up by the victim. He then transferred and cashed out 107 BTC, leaving the victim with a fraction of the original holdings.

The court's decision is significant because it clarifies that digital assets still carry legal weight in criminal proceedings, despite China's ban on cryptocurrency trading and mining. This ruling may open the door for future theft and fraud cases to be prosecuted under existing property laws.