Timothy Morano
Jun 09, 2026 10:42
Qingdao court docket sentences man to 10 years for 107 BTC theft, affirming Bitcoin as property beneath Chinese language prison legislation regardless of a buying and selling ban.
A court docket in Qingdao, China, sentenced a person to 10 years and 9 months in jail for stealing 107 Bitcoin (BTC) by memorizing most of a sufferer’s 12-word pockets restoration phrase. The Licang District Folks’s Court docket additionally fined the person, recognized as Zhang, 100,000 yuan (roughly $14,700). The theft, which occurred in July 2023, highlights the vulnerabilities of restoration phrase publicity throughout pockets setup.
The sufferer, surnamed Feng, sought Zhang’s help in cashing out 117 Bitcoin. In the course of the course of, Zhang reportedly memorized 11 of the 12 restoration phrases and later reconstructed the remaining one to achieve unauthorized entry to the pockets. He transferred 107 Bitcoin and liquidated the holdings for over $97,000, in accordance with a case abstract posted on the Supreme Folks’s Procuratorate’s official WeChat account.
Regardless of China’s strict regulatory ban on cryptocurrency buying and selling and mining, the court docket labeled Bitcoin as “property” beneath prison legislation, permitting the theft to be prosecuted. This ruling aligns with a broader authorized precedent in China, the place courts have repeatedly acknowledged the financial worth of Bitcoin in prison circumstances, although crypto shouldn’t be authorized tender. Authorized consultants be aware this twin method reconciles regulatory prohibitions with property rights enforcement.
Pockets Safety Dangers Highlighted
Alvin Kan, COO of Bitget Pockets, commented that the case underscores the human vulnerabilities in crypto safety. Whereas 12-word pockets restoration phrases are computationally safe, Kan prompt that 24-word phrases might improve safety. He warned in opposition to sharing restoration phrases, even in seemingly reliable eventualities, noting that “momentary publicity remains to be publicity.”
Feng’s case is a stark reminder for crypto customers to stay vigilant throughout pockets setup. Whereas many keep away from taking screenshots of restoration phrases, fewer take into account the dangers of getting others bodily current throughout this course of. As cryptocurrency adoption grows, such “trusted helper” compromises might grow to be extra frequent.
Broader Authorized Context
China has maintained a blanket ban on cryptocurrency actions, together with buying and selling, mining, and tokenization. Nevertheless, its courts have constantly handled digital property as protected property beneath prison legislation. This case follows a Could 2026 ruling by which one other defendant acquired a 12-year sentence for stealing and promoting Bitcoin. Each rulings replicate China’s coverage of utilizing its prison framework to punish offenders whereas sticking to its administrative prohibitions on crypto-related actions.
As of June 9, 2026, Bitcoin is buying and selling at $62,627, down 0.92% within the final 24 hours. Whereas the market impression of China’s regulatory stance on crypto stays muted globally, incidents like these function a cautionary story for traders. Merchants and pockets customers ought to reinforce their safety measures, particularly given the rising sophistication of social engineering assaults.
This case illustrates not solely the dangers of lax pockets safety but in addition the evolving authorized recognition of digital property. Whereas China’s regulatory setting stays hostile to crypto, its courts proceed to affirm Bitcoin’s standing as property, bridging the hole between administrative bans and prison legislation enforcement.
Picture supply: Shutterstock