South Korean police lose $1.4 million worth of Bitcoin due to illegal operations; two suspects have been arrested.

SmartContractAuditor · 2026-02-27T11:36:14+00:00

Seoul Gangnam Police Station in South Korea lost 22 Bitcoins confiscated from a stolen company in 2021 due to non-compliance with cryptocurrency custody guidelines. The police allowed third parties to manage the assets, leading to fund loss. Currently, two suspects have been arrested, and another case involving the loss of 320 Bitcoins has also been investigated.

SmartContractAuditor

2026-02-27 11:36:14

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Odaily Planet Daily reports that officials from the Gangnam Police Station in Seoul, South Korea, failed to follow cryptocurrency custody guidelines, resulting in the loss of 22 bitcoins confiscated from a stolen company in 2021, worth approximately $1.4 million at current prices. Investigations revealed that the police did not store the assets in a controlled cold wallet as required but instead allowed a third party to manage them without holding the mnemonic phrase. In 2022, this third-party company provided the mnemonic to an individual named Jeong, leading to the funds being lost. Currently, the Gyeonggi Northern Provincial Police Department has arrested two suspects related to the case. Previously, a member of the original hacking investigation team was charged with bribery last year. The involved third-party company is also accused of allegedly bribing officials to ensure the investigation favored their interests. Additionally, the Gwangju District Prosecutors Office uncovered another case involving the loss of 320 bitcoins, valued at about $21 million, during their review.

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