Shanghai court's first case! Successful handling of a criminal financial case involving 90,000 FIL coins, fully compliant with the return process.

Recently, the People's Court of Baoshan District in Shanghai, under the guidance of the Shanghai High People's Court and in cooperation with the Shanghai Public Security Bureau, successfully conducted price disposal of over 90,000 Filecoin (FIL) in a criminal case using the "domestic entrustment, overseas disposal, closed-loop return" model. This marks the first successful compliance disposal of virtual money in criminal property enforcement cases by the Shanghai courts, providing a replicable example for similar cases nationwide.

The Challenges of Disposing Virtual Money in Criminal Financial Cases

In the enforcement of criminal property cases, recovering the property involved is an important means of protecting the interests of victims. However, due to the anonymity, cross-border circulation, and technical complexity of virtual money, the disposal of its value faces multiple challenges:

Regulatory restrictions: must comply with financial regulations and foreign exchange management regulations.

Technical barriers: Ensure the security of asset transfers and transactions.

Cross-border circulation: Involves overseas trading platforms and Compliance review.

"Full Chain Compliance, Multi-Entity Coordination" Disposal Mechanism

To solve the above-mentioned problems, the Shanghai court has developed normative guidelines and explored a workable disposal model:

Domestic Commission: The court will entrust a third-party organization to handle the virtual money involved in the case for a pilot program and require it to provide performance guarantees.

Overseas disposal: A third party entrusts the trading process to qualified overseas agents and conducts transactions on licensed virtual money trading platforms certified by the Hong Kong Securities and Futures Commission, with the transaction price not lower than the average price of the 20 days prior to the trading date.

Closed-loop reflux: After completing the transaction, the funds are subject to foreign exchange management review and then transferred to the court's designated account, which will subsequently be confiscated and submitted to the national treasury or returned to the victims in accordance with the law.

Successful Practices of Baoshan District Court

The Baoshan District People's Court successfully completed the price disposal of over 90,000 FIL coins according to this model, ensuring that the funds flowed back in full compliance throughout the process. This is not only the first successful case of a Shanghai court handling virtual money in criminal financial cases, but also demonstrates the innovative capabilities and execution power of judicial authorities in the field of digital assets.

Implications for National Judiciary and the Cryptocurrency Market

The implementation of this case means that Chinese courts have explored a path for the judicial disposal of virtual money that is compliant with regulations and can be replicated for promotion.

To the judicial system: Provides feasible solutions for handling cases involving virtual assets, enhancing the efficiency of asset recovery.

For the cryptocurrency market: signaling that regulatory and judicial authorities can comply with the handling of cryptocurrency assets under specific conditions.

Conclusion

The Shanghai court's successful handling of FIL coin marks a key step for the Chinese judiciary in addressing criminal property cases involving virtual money. In the future, as more compliance mechanisms are improved, this model is expected to be promoted nationwide, safeguarding the rights of victims and enhancing the credibility of the judiciary.