Investigation into Missing Bitcoins
On February 25, 2026, police in South Korea took two individuals into custody amid an ongoing investigation into the disappearance of 22 bitcoins from the Gangnam Police Station. These digital coins, valued at approximately ₩2.1 billion (around $1.5 million based on current exchange rates), were initially seized during a criminal investigation back in November 2021. The situation came to light following a nationwide scrutiny of law enforcement’s handling of virtual assets after a similar incident occurred at the Gwangju District Prosecutors’ Office, where 320 bitcoins were reported missing.
Details of the Arrests
The Gyeonggi Northern Provincial Police Agency announced the arrests, which were made in connection with suspicions of embezzlement related to the missing bitcoins, which were supposed to be securely held as evidence. Investigators disclosed that while the police retained physical control of the cold wallet device meant for safeguarding the bitcoins, the cryptocurrency itself had been illicitly transferred to an external account without any authorization.
Response and Future Measures
Despite the acknowledgment of the theft, police have not verified whether any of the stolen bitcoins have been recovered thus far. In response to this troubling situation, authorities are taking decisive action to overhaul practices surrounding the management of seized digital currencies. New procedures will soon be implemented, including the requirement for dual custodians for wallets, along with enhanced measures such as sealing hardware devices and their recovery phrases.
Law enforcement representatives assured that forthcoming steps will fortify existing protocols to prevent similar incidents in the future, as the arrests prompt increased scrutiny of the vulnerabilities in how police handle digital evidence.
This situation underscores a growing demand for updated standards regarding the custody of digital assets within law enforcement agencies in South Korea.
