Seoul Police Lose 2.1B Won in Bitcoin From Seized Assets

Edgen Crypto

·Feb 17 2026, 00:44

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Key Takeaways

A security breach at Seoul's Gangnam Police Station has resulted in the loss of 22 bitcoins seized during a previous investigation. The incident raises serious questions about the security protocols for digital assets held by law enforcement agencies.

Stolen Assets: 22 bitcoins, valued at approximately 2.1 billion KRW, were stolen from a police-controlled cold wallet.
Origin of Funds: The cryptocurrency was originally seized during a 2021 investigation and was being held by the authorities.
Eroding Trust: The theft undermines public confidence in the ability of South Korean government bodies to securely manage confiscated digital assets.

Gangnam Police Report 2.1B KRW in Bitcoin Missing

The Seoul Gangnam Police Station has confirmed the theft of 22 bitcoins from a cold wallet under its control. The digital assets, worth approximately 2.1 billion Korean won, were discovered missing during a recent nationwide security inspection of virtual assets held by law enforcement agencies. The stolen bitcoins had been confiscated as part of an investigation conducted in 2021.

Theft Exposes Flaws in Government Crypto Custody

While the stolen amount is too small to affect global Bitcoin markets, the incident delivers a significant blow to public trust in South Korean institutions. It exposes critical vulnerabilities in the procedures government agencies use to safeguard seized cryptocurrencies. This theft highlights the persistent security challenges of digital asset custody, even within official state bodies, and is expected to trigger calls for stricter protocols and enhanced oversight for managing such assets nationwide.