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Chinese court jails man 10 years for stealing 107 Bitcoin using wallet recovery phrase

Market News
08 Jun 2026
Crypto news
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pluang ai news

A Chinese man named Zhang was sentenced to 10 years and nine months in prison for stealing 107 Bitcoin by memorizing a wallet's recovery phrase. Zhang gained control of the wallet after memorizing 11 of the 12 recovery words and transferred the Bitcoin to his own addresses. Prosecutors treated Bitcoin as property since it can be controlled through private keys and recovery phrases. The court also fined Zhang 100,000 yuan and rejected his appeal. This case highlights the legal recognition of Bitcoin as property in China despite ongoing regulatory restrictions on cryptocurrency trading.

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