South Korea clears way for courts to seize and sell Bitcoin for unpaid debts under new November rules
Summary
South Korea’s Supreme Court issued Rule 3280, effective Nov. 1, establishing procedures for courts to freeze, seize, transfer and sell cryptocurrency to repay civil debts. The rules cover exchange-held and self-custodied assets. Courts can order custodians to block transfers and disclose holdings and competing claims within one week. For directly held crypto, enforcement officers may take possession before the debtor is formally notified, though access to private keys may complicate enforcement. Creditors may seek court-approved transfers or sales at market or otherwise appropriate valuations. Debtors can appeal, and the framework also covers pending cases and existing orders.
