A Qingdao local court has handed down a final verdict in a high-profile Bitcoin theft case, sentencing defendant Zhang to 10 years and 9 months in prison and a fine of RMB 100,000 ($13,700). The case, prosecuted by the Licang District People's Procuratorate, underscores the judicial stance that virtual currencies like Bitcoin constitute property under criminal law, and that their theft will be met with serious consequences.
According to a report in Shandong Legal Daily, the crime occurred in the early hours of a morning in 2024. Victim Feng's digital wallet was silently accessed from a remote location, and 107 Bitcoins—worth approximately RMB 22.54 million at the time—were transferred out in a single transaction. Investigation revealed that the perpetrator was none other than Zhang, an acquaintance of Feng. Previously, Feng had asked Zhang to assist with a cryptocurrency wallet setup; during the registration process, Zhang secretly noted down the mnemonic seed phrase. With this key, he repeatedly attempted access that morning until he successfully drained the wallet.
Lies Unraveled: Money Trail Exposes Cash-Out
After being arrested, Zhang argued that he had moved the Bitcoin solely as a “protective custody” measure to prevent theft by others, not to steal them. However, prosecutors traced the stolen coins as they were transferred through multiple addresses and ultimately exchanged for over RMB 660,000 (approx. $90,000). This cash-out route disproved his defense. The prosecution determined that Zhang's actions constituted theft, and his claims were rejected.
Bitcoin Recognized as “Property” Under Criminal Law
In court, the prosecution emphasized that Bitcoin possesses economic value and exclusive controllability, can be occupied, used and transferred, and thus meets the core characteristics of “property” as defined in China's Criminal Law. As such, Bitcoin can be the object of a theft crime. Given subsequent price fluctuations, the court based the amount of theft on the actual illicit gains of over RMB 660,000, which it used to determine the sentence of nearly 11 years.
Zhang appealed the ruling, but in November 2025, the Qingdao Intermediate People's Court rejected the appeal and upheld the original verdict.
This landmark case serves as a clear warning: virtual assets are not beyond the reach of the law. Stealing cryptocurrency is a punishable criminal offense, and China's judiciary will enforce the law to protect virtual property rights.