Wenzhou Court is the first in China to conduct a legal liquidation of crypto assets, marking an important milestone in the regulation of digital currencies.
Introduction to Crypto Asset Liquidation
Recently, the Wenzhou Court liquidated seized cryptocurrencies totaling over 6,000 USDT, 2,700 TRX, and 0.8 BNB. This event marked China's first compliant liquidation of blockchain assets.
Wenzhou Court Sets Precedent
The Wenzhou Court collaborated with police and regulatory bodies to ensure the selected platform met legal requirements, creating a precedent for future lawful liquidation of digital assets.
> "With internet-related crimes on the rise, courts are working hard to explore new ways to handle virtual currencies. This successful disposal is in line with Article 23 of the Supreme People’s Court’s recently issued Opinions on Standardizing the Enforcement of the Property-Related Portion of Criminal Judgments," said Wang Zitai, case coordinator.
Minimal Market Impact
The liquidation resulted in a modest sum of approximately ¥50,000 (about $7,000), with no significant impact on global markets or liquidity. Despite its small size, this event reinforces the importance of procedural integrity in managing seized cryptocurrencies and opens avenues for structured handling of virtual assets in the future.
With the liquidation of seized assets, the Wenzhou Court has laid the groundwork for future legal regulation and structured liquidation of digital assets in China.
