The judicial disposal of the virtual money involved in the case has become the focus of attention for the judicial authorities.

The judicial disposal of the involved Virtual Money is increasingly attracting widespread follow. Judicial authorities and local financial departments hope to liquidate the seized Virtual Money to close cases and increase fiscal revenue; disposal companies hope to obtain relevant business to achieve profits. Some universities have even established specialized courses for the handling of such cases.

In August 2024, the Supreme People's Court listed "Research on the Disposal of Virtual Money Involved in Cases" as a key funding project. Nearly a year later, the Supreme People's Procuratorate also announced the establishment of theoretical research projects for prosecutorial applications in 2025, six of which are related to virtual money, and four directly involve judicial disposal issues. This indicates that the judicial disposal of virtual money involved in cases has become a key focus area for judicial authorities.

Although the Supreme Court and the Supreme Procuratorate are actively studying this issue, in practice, there are currently no courts or procuratorates in the country that directly handle the disposal of the virtual money involved in the case. Instead, the public security organs have been acting as the delegating party to carry out the disposal work. The formation of this situation has its special reasons:

1. Practical Level: The uniqueness of Virtual Money makes it difficult for court personnel to understand the disposal methods, while the public security department is relatively more familiar with it.

2. Legal Basis: Existing regulations allow for the transfer of only lists, photographs, and other proof documents for items that are "not suitable for transfer." Virtual Money is typically regarded as this type of "not suitable for transfer" property.

3. Disposal Procedure: The court usually notifies the seizing authority (such as the police) to remit the proceeds of the disposal to the national treasury after a valid judgment is made.

However, with the increasing popularization of knowledge about Virtual Money and the in-depth research on judicial disposal by various parties, the willingness of the procuratorate and the court to participate in disposal is also increasing.

Currently, the mainstream disposal model is a "domestic entrustment + overseas disposal" joint model. However, regardless of the model used, it is essential to strictly adhere to the regulatory notice released in 2021, which prohibits any domestic entity from engaging in the exchange of virtual money and fiat currency. Therefore, domestic disposal institutions can essentially only act as "transfer entrustment institutions" and may also need to be responsible for the foreign disposal funds' conversion in the domestic market.

More importantly, we should follow whether the overseas disposal and cash-out business complies with local regulatory requirements. For example, if the disposal is conducted in Hong Kong or Singapore, it is necessary to ensure that the relevant platforms have the qualifications required by local laws.

With the continued follow and research of this issue by the Supreme People's Procuratorate and the Supreme People's Court, it is expected that the judicial disposal of domestic involved Virtual Money will usher in new changes in practical operations and legal guidance. New disposal paths may also emerge accordingly. The development in this field is worth ongoing follow.