Authorities confirmed on February 13, 2026, that the Seoul Gangnam Police Station lost control of 22 BTC that had been stored in cold custody since November 2021.
At current market rates, the missing assets are valued at approximately 2.1 billion won ($1.45 million).
The loss was uncovered during a broader national audit of seized virtual assets conducted by South Korea’s National Police Agency.
How the Bitcoin Went Missing
An internal review determined that the Bitcoin had been transferred externally from a USB-based cold storage device. Although the physical device remained in police custody, the digital assets were moved to an unidentified wallet.
The original criminal investigation tied to the seized Bitcoin had been suspended, allowing the transfer to remain undetected for an extended period.
The Gyeonggi Bukbu Provincial Police Agency has launched a formal investigation to determine how the transfer occurred and whether internal personnel were involved.
Part of a Broader Pattern
The incident follows several high-profile lapses involving digital asset custody in South Korea:
- January 2026 – Gwangju District Prosecutors’ Office lost 320 BTC (approximately $29 million) in a phishing attack during a staff credential handover.
- February 6, 2026 – Bithumb Exchange mistakenly credited customers with 620,000 BTC instead of Korean won during a promotional event. Although most funds were recovered, the administrative error temporarily disrupted markets.
| Date | Entity Involved | Asset Affected | Estimated Value | Reported Cause |
| Feb 2026 | Seoul Gangnam Police | 22 BTC | $1.45M | Under investigation (cold wallet) |
| Jan 2026 | Gwangju Prosecutors | 320 BTC | $29M | Phishing attack |
| Feb 2026 | Bithumb Exchange | 620,000 BTC | $43B | Administrative error |
Custody Risks Under Scrutiny
The case raises renewed concerns over the custody and management of seized digital assets, particularly as crypto-related enforcement actions increase globally.
While traditional asset seizures rely on physical storage, digital asset custody introduces unique operational risks, including key management, internal controls, and audit procedures.
South Korean authorities have not yet confirmed whether the funds are recoverable. The investigation remains ongoing.
