South Korean Police Lose $1.4 Million Worth of Bitcoin Due to Regulatory Violations; Two Suspects Arrested

Odaily News: Officials from the Gangnam Police Station in Seoul, South Korea, failed to comply with cryptocurrency custody guidelines, resulting in the loss of 22 bitcoins seized from a stolen company in 2021. The value is estimated at approximately $1.4 million based on current prices. The investigation revealed that the police did not deposit the assets into a controlled cold wallet as required. Instead, they allowed a third-party company to manage the assets without retaining the seed phrase. In 2022, this third-party company provided the seed phrase to an individual named Jeong, leading to the loss of the funds. Currently, the Gyeonggi Northern Provincial Police Agency has arrested two related suspects. Previously, a member of the original hacking case investigation team was indicted last year on bribery charges. The involved third-party company allegedly bribed officials to steer the investigation in its favor. Furthermore, during a review, the Gwangju District Prosecutors' Office discovered another case involving the loss of 320 bitcoins, valued at approximately $21 million.