Chinas Wenzhou Court Liquidates Seized Cryptocurrencies

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Chinas Wenzhou Court Liquidates Seized Cryptocurrencies

• Chinas Wenzhou Court liquidates seized cryptocurrencies, setting a legal precedent.
• Assets converted include USDT, TRX, and BNB.
• Involvement of Chinas Ministry of Public Security ensures compliance.

Wenzhou Court has legally liquidated seized digital assets, including over 6,000 USDT, 2,700+ TRX, and 0.8 BNB, marking a new precedent in Chinas legal system.

This landmark case highlights Chinas evolving legal framework for handling digital asset crime, potentially influencing future regulatory practices and exchange operations in the cryptocurrency sector.

Seized Crypto Liquidation Sets Legal Benchmark in China

The Wenzhou Courts liquidation of virtual assets stolen in represents a significant judicial first in China. Key figures included the defendant Liu, who used a counterfeit digital wallet, and Wang Zitai, who coordinated the asset disposal by engaging the Third Research Institute of the Ministry of Public Security. The court worked under guidelines, ensuring transparency in the liquidation process.

Asset conversion through a licensed exchange to clear funds to about 50,000 RMB exemplifies a new procedural standard. This sets a notable precedent for judicial responses to cybercrime, delineating a transparent path for asset handling in criminal cases.

The financial and government sectors have largely supported this legal process. Cryptocurrency markets, while minimally affected by the volumes liquidated, noted the move as a procedural anchor for future cases. There have been no significant public reactions from key figures in the cryptocurrency community.

Chinas Use of Article 23 in Crypto Cases Sparks Global Interest

Did you know？ This liquidation marks the first time the Chinese judicial system applied Article 23 of the Supreme Court amendments to handle digital assets, providing a new standard for future cases.

According to CoinMarketCap, Tether USDt (USDT) maintains a price of $1.00 with a market cap of $164.53 billion as of August 9, 2025. With a trading volume of $106.35 billion and stable price movements within the past 90 days, USDT shows resilience in market performance.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 23:06 UTC on August 9, 2025.

Coincus research team assesses that this regulated liquidation method can increase confidence in digital asset transactions under judicial review, potentially fostering a standardized approach that balances market dynamics while enhancing legal safeguards. This move could further drive international dialogues on the integration of digital assets into global financial systems.