Significant Loss of Digital Assets Reported
Authorities from the Gangnam Police Station in South Korea have reported a significant loss of digital assets, as 22 Bitcoins, valued at approximately ₩2.1 billion (about USD 1.6 million), have gone missing from their custody. This incident came to light as part of a nationwide audit examining the management of virtual assets by law enforcement agencies.
Previous Incidents and Increased Scrutiny
This loss follows a previous troubling incident in which 320 Bitcoins were reportedly lost from the Gwangju District Prosecutors’ Office last year, prompting increased scrutiny over how police and prosecutors handle digital currencies acquired during criminal investigations.
Details of the Incident
The 22 Bitcoins were initially surrendered voluntarily by suspects during an investigation conducted in 2021 and had been securely stored until their recent disappearance. The loss was uncovered during an internal review spurred by the earlier Gwangju case, which revealed that the Bitcoins had been illicitly transferred out of the designated storage wallet.
Security Concerns
Interestingly, while the physical cold wallet—a USB-like device used for storing the cryptographic keys—remains in the possession of the Gangnam Police, the actual Bitcoins are missing. This raises questions about the security of the digital keys, which may have been accessed, allowing for the transfer of the coins without noticeable signs of hardware theft.
Investigation Underway
In response to this incident, the Gyeonggi Northern Provincial Police Agency has initiated a formal investigation to pinpoint how the unauthorized transfer occurred and whether any personnel might be implicated. Although no accusations of wrongdoing have been made against police staff, authorities are meticulously examining access logs, protocols for managing wallet keys, and checking for any unauthorized transactions on the blockchain.
Ongoing Investigations
As for the missing Bitcoins, officials have yet to disclose whether any have been recovered or linked to external digital wallets, although investigations into blockchain activity are ongoing.
