China is advocating for a multi-path judicial approach to handle virtual currencies involved in criminal cases. The proposal suggests incorporating compliant third-party institutions to assist with on-chain tracking, secure custody, and compliant liquidation of these assets. This approach aims to prevent funds from re-entering speculative markets through closed-loop fund transfers, on-chain evidence storage, and price evaluation processes. The proposal also calls for clear legal definitions for third-party institutions, standardized technology and procedures, and enhanced oversight by prosecutorial authorities. Different disposal methods are recommended, including liquidation, restitution, and destruction. Priority should be given to recovering value for victims, while tokens used for illegal purposes or with low liquidity may be destroyed or technically sealed. For stablecoins, the proposal suggests exploring the possibility of returning the original currency under compliance conditions.