TechFlow news, on December 14, Zhongyiwang published an article titled "Establishing Multiple Judicial Disposal Paths for Criminal Case-Involved Virtual Currency." The article proposes improving judicial disposal paths for virtual currency involved in criminal cases:
First, clarify the legal status and role positioning of third-party institutions. Future legislation could include third-party institutions within the scope of judicial auction assistants, granting them exclusive qualifications for "one-time, targeted, non-public bidding."
Second, build a dual system of technical standards and procedural norms. Jointly issued by the Supreme People's Court, Supreme People's Procuratorate, and financial regulators, the dual standards would adopt either the 20-day average price before the transaction date or the victim's acquisition cost as the benchmark for price evaluation, standardize on-chain evidence formats, and directly transfer proceeds from monetization to special fiscal accounts, preventing funds from flowing back into cryptocurrency trading channels.
Third, strengthen full-process integration of procuratorial supervision and rights protection. Procuratorial organs will participate throughout the disposal process, requiring third-party institutions to regularly submit progress reports on disposal activities and establishing mechanisms for right notifications and objections.
Fourth, explore differentiated disposal models. Apply monetization, destruction, and return measures differently based on case specifics. For cases involving victim asset recovery, prioritize targeted bidding monetization to ensure sufficient compensation. For stablecoins obtained through fraud but not yet exchanged by victims, if victims prefer original coin return, direct repayment may be made under regulatory compliance to avoid exchange rate losses. For cases involving confiscation of prohibited items, adopt destruction or technical sealing modes to prevent re-entry into the market. For tokens specifically used in pyramid schemes or gambling with poor liquidity and shallow market depth, forced monetization might lead to devaluation; thus, they may be legally destroyed with destruction records documented in court rulings. For high-value cryptocurrencies where illicit gains have mixed with legitimate investments, prioritize monetization to maximize loss recovery. Additionally, for cases with minor涉案 amounts or significant technical tracking difficulties, simplified disposal procedures such as comprehensive determination models may be explored—i.e., determining the value and ownership of involved virtual currencies based on available evidence when complete transaction trails cannot be clarified.
It is reported that Zhongyiwang is an internet integrated service platform hosted by the China Procuratorial News Agency, supervised by the Supreme People's Procuratorate. The authors of this article are respectively a Party Committee member and senior researcher at the Third Branch of Beijing Municipal People's Procuratorate, a professor and doctoral supervisor at the Law School of Capital University of Economics and Business, and a research assistant at the Anti-Corruption and Rule of Law Research Center of Capital University of Economics and Business.
