A British court has ordered the return of $6.8 billion (approximately 9 trillion won) worth of Bitcoin seized from a Chinese fraud ring to victims. The investment fraud, which defrauded more than 1.28 million people between 2014 and 2017, involved the perpetrators converting the illicit funds into Bitcoin in China and then entering the UK using forged documents. British police seized the Bitcoin between 2018 and 2021.
Initially, the British government indicated its intention to incorporate the confiscated Bitcoin into the national treasury, but recently changed its position during a court hearing, declaring it would pursue a compensation plan for victims. Thousands of victims filed claims in court, and lawyers emphasized the "shattered families and livelihoods" and argued for the victims' priority.
However, experts in the field warn that the actual execution process must be closely monitored. The representative of a UK cryptocurrency asset recovery company pointed out a legal loophole, stating, "Under the UK Proceeds of Crime Confiscation Act, the government can transfer seized assets to the national treasury or police budget." The US and Australia also operate similar "asset recovery incentive systems," which do not always prioritize victim compensation.
Each country has a markedly different policy on handling seized assets. Germany sold confiscated Bitcoin on the market, while the United States holds $37 billion and intends to use it as a strategic asset. Paradoxically, the UK's decision appears to emphasize moral responsibility, but legally, the government still has discretion.
As the cryptocurrency market matures and large-scale fraud cases increase, the question of how to handle confiscated assets becomes an issue that even Korea cannot avoid. Given the ambiguity of legal and policy frameworks compared to technological advancements, the UK's concerns suggest what we must prepare for now.
