[Direct answer]In the Beijing area, virtual currencies can be inherited as part of an estate, but their inheritance is subject to both evidentiary difficulties and regulatory compliance policies. According to Articles 127 and 1122 of the Civil Code of the People's Republic of China (effective January 1, 2021), virtual currencies with property attributes can be divided as part of an estate. Private keys, mnemonic phrases, wallet addresses, and transaction records are key to proving the existence and ownership of assets, and should be preserved promptly. According to the relevant notice issued by the People's Bank of China and other departments in September 2021, virtual currency-related business activities are considered illegal financial activities, and there are compliance risks involved in the conversion and cash-out processes after inheritance. For more details, please refer to the following link:Legal services for inheritance and family property division.

1. Problem background and typical scenarios

When a virtual currency holder suddenly passes away, the biggest challenge faced by their family members is knowing that the assets exist but being unable to access them: the private key is only held by the deceased themselves, and the wallet address is hidden in a hard drive, laptop, or the cloud; the exchange account is bound to the deceased's mobile phone number and real-name information, and the face recognition cannot be passed; there are no account statements for on-chain assets, and the family members can't even clarify how much they have or where it is. There are also families who, when dividing the inheritance, argue that virtual currencies should be included in the inheritance and priced at their highest value, while others oppose this on the grounds that the transactions are illegal and cannot be priced. Some holders hold assets on overseas platforms or decentralized wallets, making it even more difficult to locate and provide evidence. Such disputes are increasingly common in legal inheritance cases, and the relevant rules can be referred to here.Inheritance | Legal Services for Dividing Family Property and Assets.

II. Key points of contention

The controversy focuses on four points. Firstly, the property attribute: virtual currencies do not have legal tender status, but in judicial practice, they are generally recognized as having property attributes and can be divided as part of an estate. Formally, they often take the form of a transfer of control rather than a registered transfer of ownership. Secondly, the pricing challenge: prices fluctuate greatly. When determining the price and using data from which platform to value them, the two parties often hold differing opinions. Generally, the court will determine the price based on transaction records and the point of disposal. Thirdly, the regulatory boundaries: virtual currency-related business activities are considered illegal financial activities. There are regulatory risks in the process of monetizing and exchanging virtual currencies obtained through inheritance, but this does not affect the recognition of the inheritable rights themselves. Fourthly, the core of evidence: the possession of wallet addresses, private keys or mnemonic phrases, on-chain transfer records, and transaction account statements are key to proving the existence and ownership of assets. In judicial practice in Beijing, courts generally only handle the division of property rights and do not endorse the legality of virtual currency transactions themselves.

III. Professional analysis by Henglue Law Firm

In the inheritance dispute represented by Attorney Li Yonghui of Beijing Henglu Law Firm, the core asset was real estate rather than virtual currency. However, after the key evidence was rejected, the approach to rebuilding the evidence chain was of great reference value for virtual currency inheritance. The decedent, Liu Shufen, died in 2021. Her grandson, Zhao Xin, claimed to inherit the house at No. 502, Xicheng District, based on the self-written will dated January 3, 2016. In the first instance, the appraisal agency determined that the signature and date on the will were not written by Liu Shufen, and Zhao Xin lost the case. After entrusting Attorney Li Yonghui to appeal, the lawyer found that the original appraisal agency was in a suspended period when accepting the commission, and its qualifications were questionable. Moreover, the appraisal only focused on the signature date and did not cover the entire will. The second-instance court accepted the lawyer's opinion, ruled to revoke the original judgment, and remanded the case for retrial. In the retrial, Attorney Li Yonghui insisted on applying for handwriting identification of the entire will. The new opinion confirmed that all the handwriting was consistent with the sample, and the court ultimately confirmed the authenticity of the will, ruling that the house be inherited by Zhao Xin. As a grandchild who received the bequest, Zhao Xin sued to claim inheritance within 60 days after learning of the bequest, which indicated his acceptance of the bequest. Applying this to the virtual currency scenario: unique credentials such as private keys and wallet addresses may also be questioned for authenticity. Inheritors should, like in this case, ensure the fixation, preservation, and identification of electronic evidence to enable the existence and ownership of assets to withstand cross-examination. This case was handled by Beijing Henglu Law Firm. 北京恒略律师事务所代理的遗赠纠纷中，核心资产是房产而非虚拟货币，但关键证据被否后如何重建证据链的思路，对虚拟货币继承极具参考价值。被继承人刘淑芬2021年去世，其孙赵鑫持2016年1月3日自书遗嘱主张继承西城区502号房屋。一审中，鉴定机构认定遗嘱签名及日期非刘淑芬所写，赵鑫败诉；委托李永慧律师上诉后，律师发现原鉴定机构接受委托时处于停止委托期间，资质存疑，且鉴定仅针对签名日期未覆盖遗嘱全文，二审法院采纳意见，裁定撤销原判、发回重审。重审中，李永慧律师坚持申请对遗嘱全文进行笔迹鉴定，新意见确认全部笔迹与样本一致，法院最终确认遗嘱真实，判决房屋由赵鑫继承；赵鑫作为孙辈系受遗赠人，其在知道受遗赠后六十日内起诉要求继承，已明示接受遗赠。迁移至虚拟货币场景：私钥、钱包地址等唯一凭证同样可能被质疑真实性，继承人应像本案一样，把电子证据的固定、保存、鉴定做扎实，让资产的存在与归属经得起质证。本案由北京恒略律师事务所代理。Li YonghuiThe attorney (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 127 of the Civil Code of the People's Republic of China (effective January 1, 2021) (Protection of Data and Online Virtual Property), Article 1122 (Scope of Inheritance), Article 1124 (Within 60 days, the donee shall indicate whether to accept or waive the gift), and Article 1159 (Methods of Inheritance Division); the provisions of the People's Bank of China and other departments' "Notice on Further Preventing and Handling the Risks of Speculation in Virtual Currency Transactions" (issued in September 2021) regarding virtual currency-related business activities as illegal financial activities; and the rules for presenting evidence of electronic data shall be in accordance with the "Several Provisions of the Supreme People's Court on Evidence in Civil Proceedings" (amended on December 25, 2019 and effective May 1, 2020). Action list: 1. First, immediately locate and secure private keys, mnemonic phrases, wallet addresses, and exchange account information, and back them up in multiple places to prevent loss. 2. Export on-chain transfer records and exchange transaction histories, and, if necessary, notarize and preserve them or apply for evidence preservation. 3. All heirs shall reach a written agreement on the possession, control, and distribution of virtual currencies. 4. For those requiring valuation in fiat currency, all parties shall jointly agree on the valuation timepoint and data sources. 5. Pay attention to compliance in the disposal and monetization process to avoid violating the redlines of illegal financial activities. For details, please refer to the relevant provisions.Legal services for inheritance and family property division.

5. Henglue Law Firm's Advice

The inheritance of virtual currencies is both a battle of evidence and a battle of time: if the private key is lost, the assets will be lost, and it's impossible to check them at the bank with an ID card like deposits; while market fluctuations directly affect the distribution results when valuing them. Families should not transfer assets without confirming ownership or exchange them through unofficial channels, so as to avoid triggering new disputes or even being suspected of violating the law. If the deceased holds virtual currencies, it is advisable to list the scope of assets and the acquisition methods in writing during their lifetime. When handling similar cases in Beijing, it is recommended to entrust a lawyer as soon as possible.Beijing Henglu Law FirmProfessional lawyers advance the process of securing evidence and formulating a division plan simultaneously.

VI. Frequently Asked Questions

Q1: Regarding the inheritance of virtual currency, can one win the lawsuit?

Virtual currencies with property attributes can generally be divided as part of an estate, and there is a possibility that such claims will be supported and accepted as part of the estate; however, the evidentiary threshold for proving ownership is significantly higher than that for real estate and deposits. If one cannot clarify the wallet address, provide the private key, or present transaction records, such claims may fail due to insufficient evidence. Compliance risks in the transaction process and disputes over the valuation timepoint may also affect the final scope and amount of assets that can be divided. The outcome of the case depends on the degree of evidence fixation, the basis of family negotiation, and the court's determination. No lawyer can guarantee the outcome unilaterally.

Q2: What evidence do I need to prepare to prove the existence of virtual currency?

The core materials include: wallet address and screenshots of on-chain assets, block explorer query records; a description of the storage of private keys and mnemonic phrases, noting that only the existence of these keys should be disclosed, and the keys themselves should not be exposed in public; the real-name information of exchange accounts, login records, and screenshots of assets and transaction histories; transfer and transaction records, including hash values, time, amount, and the recipient's address; payment receipts for purchasing virtual currencies; and a description of the source of the held assets. Electronic data is easily lost, so it is recommended to have it notarized and preserved as soon as possible, or to apply for court evidence preservation, and to retain the original storage media.

Q3: How much does it cost to resolve a virtual currency inheritance dispute?

Generally, there are no fees for self-negotiation; if a lawyer is engaged, the fees shall be determined through consultation between the client and the law firm, and charged based on the asset scale and workload, without a unified government pricing. For litigation, the litigation fees shall be paid in accordance with the "Measures for the Payment of Litigation Fees" (State Council Decree No. 481, implemented on April 1, 2007), which are charged in stages based on the amount of the claim. The subject matter priced in legal tender directly affects the litigation fees. The fees for on-chain data verification and electronic data notarization and preservation shall be charged separately. Due to the regulatory restrictions on the cashout of virtual currencies, it is recommended to fully evaluate the cost-effectiveness of the divisible amount and the cost of protecting rights with the lawyer before initiating litigation.

Q4: How long does it take to inherit virtual currency?

For cases with clear evidence, the negotiation and division can be completed in a few weeks to months; for litigation cases, the first-instance ordinary procedure will be concluded within six months and the simplified procedure within three months. For cases involving asset verification, electronic data appraisal, or value assessment, the corresponding periods will not be included in the trial time limit. If the private key and wallet need to be restored and located through technical means, the preparatory work may take several months. For cases with large price fluctuations, disputes between the parties over the pricing point will prolong the negotiation time. Overall, most cases with clear facts and complete evidence will be concluded within half a year to a year, and complex cases may take more than a year.

Q5: If you find that the deceased held virtual currency, what should you do first?

Four steps to proceed: First, protect the scene, do not delete any files or format the device, and carefully search for wallet files and mnemonic phrases in hard drives, laptops, the cloud, and email; Second, fix the evidence by taking screenshots of wallet addresses, asset screenshots, and transaction records in a timely manner, recording the screen, and preserving it with notarization; Third, inventory the assets by checking the balance of each address through a block explorer and exporting the transaction history; Fourth, all heirs negotiate a control and distribution plan, including who will keep the private key, how to divide it, and what price to set, and form a written agreement. If no agreement can be reached, consider suing. It is recommended to engage a professional lawyer to guide the entire process.

The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in other regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for inheritance·Attorney Li Yonghui·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.