Chinese Court Recognizes Bitcoin as Property in 107 BTC Theft Case

A court in Qingdao, eastern China, has sentenced a man identified as Zhang to 10 years and nine months in prison for stealing 107 Bitcoin after memorizing most of a wallet recovery phrase. The court also imposed a fine of 100,000 yuan, equal to about $14,700.

How the 107 Bitcoin Theft Happened

The case began in July 2023 when a Bitcoin holder named Feng asked Zhang, an acquaintance who had previously helped with crypto transactions, to assist with cashing out 117 Bitcoin. During the wallet setup process, Feng wrote down the 12-word recovery phrase. Prosecutors said Zhang secretly memorized 11 of the 12 words and later figured out the final word, allowing him to gain access to the wallet.

Investigators found that Zhang transferred 107 Bitcoin and later converted part of the assets, earning more than $97,000. Although Zhang claimed he was only protecting the funds and eventually lost money through speculation, electronic records linked the transactions directly to him.

Chinese Court Classifies Bitcoin as Property

Despite China’s restrictions on cryptocurrency trading and mining, prosecutors argued that Bitcoin qualifies as legal property under criminal law. The court agreed, treating the stolen Bitcoin as property and convicting Zhang of theft.