Chinese Court Orders Bitcoin Restitution After Nearly 11-Year Sentence in Seed Phrase Theft

A Qingdao court has finalized its ruling against a man who stole 107 Bitcoin by memorizing a victim's seed phrase, sentencing him to 10 years and 9 months in prison and ordering full restitution of the stolen Bitcoin — the first reported restitution order in the developing case. The story emerged June 3 when prosecutors established a landmark precedent treating Bitcoin as property under Chinese criminal law; the Licang District People's Court had originally convicted defendant Zhang on April 28, 2025, with an appeal upheld November 10, 2025. The defendant realized over $97,000 in proceeds and was fined 100,000 yuan (~$14,700), while the crime was valued at 660,000 yuan in traced sales proceeds rather than market price. The ruling reinforces legal protections for crypto self-custody in China without signaling any easing of the 2021 trading ban.