Headline: Gangnam Police Admit 22 BTC Missing From 2021 Seizure as Nationwide Review Uncovers Gap in Custody South Korea’s Gangnam Police Station has confirmed that 22 bitcoins — roughly ₩2.1 billion (about USD 1.6 million) — have gone missing from police custody. The loss, tied to assets seized during a 2021 investigation, was uncovered during a nationwide audit of how law enforcement handles virtual assets. What happened - The 22 BTC were voluntarily surrendered by suspects in 2021 and have been held by Gangnam police since then. - During an internal review prompted by last year’s high-profile loss of 320 BTC at the Gwangju District Prosecutors’ Office, investigators discovered the coins had been moved out of the storage wallet without authorization. - Curiously, the physical cold wallet device — a USB-style hardware unit used to store private keys offline — remained in Gangnam Police’s possession, suggesting the private keys were accessed and the funds transferred without the hardware itself being physically stolen. Investigation under way - The Gyeonggi Northern Provincial Police Agency has opened a formal internal investigation to determine how the transfer occurred and whether any personnel were involved. - Authorities have not publicly accused staff of criminal wrongdoing. Officials say they are reviewing internal access logs, key-management procedures and evidence of any unauthorized digital transfers. - Investigators are also reportedly combing blockchain transaction records, though police have not disclosed whether any of the missing bitcoin have been recovered or traced to external wallets. Why it matters The incident amplifies scrutiny over how Korean law enforcement secures seized crypto. Losses like the 320 BTC case in Gwangju and now this Gangnam disappearance highlight operational risks around custody, private-key management and digital asset chain-of-custody — issues that courts and police agencies worldwide are grappling with as crypto becomes a more common element in criminal cases. What’s next Authorities are expected to continue forensic blockchain tracing, review custody protocols, and determine whether procedural lapses or insider involvement played a role. The outcome of the internal probe will likely shape future guidelines for handling seized digital assets in South Korea. Read more AI-generated news on: undefined/news

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