22 Bitcoin Worth $1.5 Million Disappear from Seoul Police Storage

South Korean authorities are under scrutiny as 22 Bitcoin, worth roughly $1.5 million, went missing from a police station’s cold wallet, as reported by local news.

The Bitcoin, which had been placed in custody at the Gangnam Police Station, was discovered missing amid an audit following a separate incident involving the loss of 320 Bitcoin. This case raised alarms regarding how authorities manage and safeguard seized digital assets.

The missing Bitcoins were reportedly moved externally, with no evidence suggesting that the cold wallet was compromised. These losses have intensified concerns about digital asset management at police facilities.

Broader Custody Issues Under Review

Following the disappearance of the 320 Bitcoin from a Gwangju District Prosecutors’ Office case in August 2025, which was attributed to a leaked password in a phishing attack, a nationwide review of digital asset custody practices was initiated by the National Police Agency. The suspension of the ongoing inquiry into the missing 22 Bitcoin from November 2021 has been met with considerable scrutiny.

Authorities now face questions over their procedures for handling confiscated cryptocurrency properly, especially after a ruling in January declared Bitcoin is subject to seizure under the Criminal Procedure Act. Any Bitcoin held in centralized exchanges can be frozen if connected to an ongoing criminal investigation.

Supreme Court Ruling. Source: Court of Korea
Supreme Court Ruling. Source: Court of Korea

Conclusion

The increasing number of custody failures is prompting investigations into how authorities maintain the security of seized cryptocurrencies.