A Chinese court has recognized Bitcoin as legally protected property, sentencing a man to 10 years and 9 months in prison for stealing 107 Bitcoin by memorizing a seed phrase. The ruling, issued in eastern China, marks the first time a Chinese court has explicitly applied property theft laws to Bitcoin since the country's 2021 crypto trading ban. The case sets a precedent for how digital assets are treated under Chinese law — not as banned contraband, but as property worth protecting.
How 107 Bitcoin Vanished
The theft was almost old-school. The man, whose name has not been released, gained access to another person's cryptocurrency wallet by memorizing the seed phrase — a string of words that unlocks the private keys. No hacking, no malware, no exchange breach. He simply remembered what he saw and emptied the wallet of 107 Bitcoin. At current prices, that's a seven-figure haul. Local police tracked the transaction on the blockchain and arrested him.
Bitcoin as Property — A Legal First
China banned crypto trading and mining in 2021, but it never outlawed personal ownership of Bitcoin. This case forced the question: if you steal someone's Bitcoin, what crime is it? The court answered by classifying Bitcoin as “property” under Chinese criminal law, specifically the crime of theft. That's not a given — some jurisdictions treat crypto as a commodity or a digital asset without clear property status. By going with property, the court gave Bitcoin holders a clear legal shield: steal it, and you're a thief facing a very long prison term.
A 10-Year Sentence
10 years and 9 months is stiff by any standard, and it's notably longer than many sentences for equivalent fiat theft in China. The judge likely factored in the amount stolen — 107 Bitcoin is a large sum — and the method, which involved a deliberate breach of trust. The sentence sends a strong signal that crypto theft won't be treated lightly, even in a country where trading the asset is illegal.
What This Means for Crypto in China
This isn't a reversal of China's ban on trading, but it does carve out legal recognition for the underlying asset. For Chinese Bitcoin holders — and there are still plenty who stored coins before the ban — the ruling provides some reassurance that their holdings aren't outside the law entirely. If someone steals your Bitcoin, you can go to the police and get a property-theft case opened. Whether that applies to other crypto assets or smart-contract tokens remains up in the air. The court didn't go that far.
The defendant has the right to appeal within 10 days. If he does, it'll be the first test of whether a higher court agrees that Bitcoin is property. For now, the ruling stands as a reference for future cases — and a warning to anyone eyeing someone else's seed phrase.
