The Supreme Court of South Korea recognized cryptocurrency as an "asset with measurable value,” the Korea Times reported.
On Wednesday, the top court confirmed a previous appellate court order to confiscate the 191 bitcoins (worth around $1.4 million according to current exchange rate) from a person named Ahn, who earned the bitcoins from running an illegal online pornography website.
In its ruling, the Supreme Court said that it found the applicant, Ahn, was guilty of the alleged misconduct and that the confiscation of bitcoin was possible.
"The cryptocurrency is recognized to have value so it can be confiscated," the Supreme Court stated. This marks the first time that the court has ordered the confiscation of a cryptocurrency.
A lower court had previously sentenced Ahn to 18 months in prison and 696 million won in fine. He was arrested and indicted last May for violating the Protection of Children and Juveniles From Sexual Abuse Law.
Following Ahn’s sentencing, prosecutors urged to seize 216 bitcoins found in his possession, claiming that they were earned illegally. While a lower court ruled against the prosecution, a high court ruled in its favor stating that cyber assets (such as cryptocurrencies) could be considered as profit earned from the trade in goods. The high court noted that 191 of the 216 bitcoins were payments for the illicit content on the website.
"The bitcoins were earned from the proceeds of crime," the high court, said ordering them to be confiscated. “If we return the bitcoins to Ahn, it will be giving him back profits that were earned illegally from running an online porn site."
