Encryption asset theft cases spark legal disputes

Recently, a case involving the theft of cryptocurrency has attracted widespread attention in Shanghai. In this case, a user discovered that their encrypted assets worth millions stored in a certain wallet had suddenly disappeared. After investigation, it was found that multiple former employees had illegally obtained the user's private keys and mnemonic phrases by exploiting backdoor programs implanted through their positions.

Ultimately, four individuals involved in the case were sentenced to three years in prison for the crime of illegally obtaining data from a computer information system. However, this ruling has sparked controversy within the legal community, primarily focusing on the determination of the nature of encryption assets and the applicability of the corresponding charges.

Currently, there are two views on the qualification of encryption assets in the judicial practice of our country: one believes that encryption assets do not belong to property, while the other believes that they have property attributes. In recent years, more and more cases tend to recognize the property attributes of encryption assets, which can become the object of property crimes.

Legal experts have pointed out that convicting the defendants in this case for the crime of illegally obtaining data from a computer information system may not adequately assess the nature of the criminal behavior. They believe that, considering the characteristics of the involved personnel committing the crime by leveraging their positions, convicting them for embezzlement might be more appropriate.

This case highlights the challenges faced by the existing legal framework in dealing with new types of crime as blockchain technology and the encryption asset market evolve. In the future, the legal community needs to further clarify the legal attributes of encryption assets to provide more unified guidance for judicial practice.

This case also reminds holders of encryption assets to enhance their security awareness, choose trustworthy platforms and wallets, and take necessary security measures to protect their assets. At the same time, relevant enterprises should also strengthen internal management to prevent internal personnel from using their positions to engage in illegal activities.

As technology continues to advance and the market matures, we hope that the law can keep pace with the times, providing clearer and more effective legal protection for the encryption asset sector.