Virtual Money Judicial Disposal Attracts Attention from the Supreme Prosecutor

The judicial disposal of the involved Virtual Money is increasingly becoming a focal point. Judicial institutions and local financial departments hope to monetize the seized Virtual Money to complete case handling and increase fiscal revenue. Disposal companies expect to gain relevant business opportunities. Some higher education institutions have even established specialized training courses to explore issues in this field.

In August 2024, the Supreme People's Court listed the "Research on the Disposal of Involved Virtual Money" as a key funding project. Nearly a year later, the Supreme People's Procuratorate (abbreviated as "Supreme Procuratorate") also joined this research camp. Among the six topics related to virtual money published recently in the 2025 annual theoretical research projects of the procuratorate, four directly involve judicial disposal. This trend highlights the importance of judicial disposal of virtual money in the legal community.

The Supreme Procuratorate has initiated a total of 234 research topics on prosecutorial application theory, of which 110 have received funding and 124 are self-funded. Six topics related to Virtual Money have all received funding support from the Supreme Procuratorate, demonstrating its high attention to this field.

Although the Supreme Court and the Supreme Procuratorate are actively researching the judicial disposal of Virtual Money, in practice, the disposal work is still mainly handled by the public security organs. This situation differs from normal criminal procedures, where the disposal of property involved in a case should typically be conducted by the court. The reasons for this situation may include: the specificity of Virtual Money makes court personnel lack relevant experience, while public security organs are relatively more familiar with this aspect.

From the legal basis perspective, existing regulations provide certain space for public security organs to handle cases. The "Interpretation of the Criminal Procedure Law" stipulates that courts handle seized or confiscated property related to cases that are transferred with the case. The "Regulations on the Procedures for Public Security Organs to Handle Criminal Cases" allow for the transfer of relevant documentary evidence instead of physical items that are not suitable for transfer. In addition, the "Regulations on Several Issues Concerning the Implementation of the Criminal Procedure Law" from 2012 also provide a legal basis for public security organs to handle property related to cases.

However, with the popularization of Virtual Money knowledge and the in-depth research by various parties on judicial disposal, the interest of the procuratorate and the court in participating in disposal is also increasing. This may lead to changes in the disposal procedures and the allocation of rights and responsibilities in the future.

In terms of disposal methods, the current main approach is the "joint disposal model" which combines domestic entrustment with overseas disposal. At the same time, there are various models such as overseas bank disposal, auction disposal, and recovery by virtual money issuers. However, regardless of the method used, it is necessary to comply with the regulations of the "9.24 notice" issued in 2021, which states that domestic entities are not allowed to engage in the exchange of virtual money for fiat currency.

Therefore, when judicial authorities select disposal institutions, they should not excessively focus on the so-called "qualifications" within the country, but should pay more attention to the compliance of the overseas disposal process, ensuring that it meets local regulatory requirements. For example, if disposal is carried out in Hong Kong or Singapore, it is necessary to ensure that the selected platform has the qualifications required by local laws.

With the continuous research by the Supreme People's Procuratorate and the Supreme People's Court on the judicial disposal of Virtual Money, it is expected that new changes will emerge in this field in the future, including adjustments in disposal practices and legal guidance. New disposal pathways may arise, providing more standardized and efficient solutions to this complex issue.