The Supreme Court of South Korea has established a formal framework for the seizure and sale of cryptocurrency assets to satisfy civil debts. Supreme Court Rule No. 3280, promulgated on October 12, 2026, will officially take effect on November 1, 2026. This regulation provides a structured legal process for creditors to recover funds from debtors holding digital assets.
For assets stored on exchanges like Upbit or Bithumb, the rule classifies holdings as withdrawal claims against the custodian. Upon receiving a court order, these platforms are legally required to disclose the debtor's holdings within one week and must enforce bans on asset transfers. This mechanism aims to provide creditors with a predictable path for debt recovery.
The framework also addresses self-custodied assets, where individuals control their own private keys. Courts are authorized to either transfer these assets directly to creditors at court-determined values or sell them through licensed virtual asset service providers. Additionally, the rule introduces provisional measures, allowing courts to freeze assets before a final judgment is reached.
This new procedure follows the Supreme Court's 2018 recognition of Bitcoin as an intangible asset with property value and a December 2025 ruling that permitted Bitcoin seizure under the Criminal Procedure Act. The formalization of these rules for civil cases responds to an increasing number of crypto-related legal disputes in South Korea.
