South Korean Court Can Require Exchanges to Freeze Debtors' Crypto Assets Within Seven Days

The proposed amendment to the Civil Execution Rules by the Supreme Court of South Korea will allow creditors to freeze, identify, and liquidate virtual assets held by debtors. The court can require exchanges to disclose the types and amounts of cryptocurrency held by the debtor within seven days of receiving the order and to freeze the corresponding assets. The deadline for public comments on the proposal is August 11, and it is expected to take effect on October 1. Once the assets are identified and frozen, the court may designate them for distribution to creditors or order liquidation, to be executed by virtual asset service providers.

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