South Korean Police Probe Disappearance of 22 Bitcoin From Seized Custody Wallet
Seoul, 13 Feb 2026 – Authorities in South Korea have opened an investigation after a cold‑wallet holding 22 bitcoin, worth roughly $1.5 million at today’s market price, was found to be empty during a nationwide audit of seized digital‑asset holdings. The missing coins were originally submitted to the Gangnam Police Station in November 2021 as part of a separate investigation.
Background
The 22 bitcoin were voluntarily handed over to police in 2021 and stored in an offline (cold) wallet at the Gangnam precinct. The assets remained untouched until a comprehensive review of cryptocurrency custody practices – triggered by a high‑profile loss of 320 bitcoin (about $21 million) at the Gwangju District Prosecutors’ Office in August 2025 – uncovered that the Gangnam wallet no longer contained the tokens.
The earlier 320‑bitcoin incident was attributed to a leaked password that enabled a phishing‑based breach, prompting the National Police Agency to launch a country‑wide audit of all seized crypto assets. It was during this review that the disappearance of the 22 bitcoin was detected.
Investigation Details
- Agency involvement: The Gyeonggi Northern Provincial Police Agency is now leading the probe into how the 22 bitcoin left the cold wallet, and whether any internal staff or external actors were involved.
- Status of the original case: The investigation that led to the seizure of the 22 bitcoin has been placed on hold pending the outcome of the current inquiry.
- Wallet integrity: Preliminary statements from the police indicate that the hardware wallet itself was not physically stolen, suggesting the transfer was executed using legitimate access credentials.
Legal Context
In January 2024, South Korea’s Supreme Court clarified that bitcoin and other digital tokens qualify as “objects of seizure” under the Criminal Procedure Act. The ruling treats cryptocurrency as electronic information with independent manageability, tradability, and economic value, thereby granting prosecutors the authority to freeze or confiscate assets held on centralized exchanges when tied to criminal investigations.
The recent missing‑bitcoin case arrives at a time when law‑enforcement agencies are still adapting to the technical and procedural demands of managing digital‑asset evidence.
Analysis
The incident highlights several systemic challenges:
- Custody risk for public institutions – Unlike private custodians, police departments may lack robust key‑management systems, audit trails, and multi‑signature safeguards that are now standard in the crypto‑custody industry.
- Human factor vulnerabilities – The fact that the wallet was not physically taken but the assets were transferred points to possible insider compromise, weak password policies, or inadequate access controls.
- Regulatory pressure – The Supreme Court decision broadens the scope of asset seizure, increasing the volume of digital assets that law‑enforcement must handle and further stressing existing custody frameworks.
- Public confidence – Repeated custody failures risk eroding trust in authorities’ ability to manage seized crypto, potentially discouraging cooperation from future offenders and victims.
Key Takeaways
- 22 bitcoin (≈ $1.5 M) vanished from a police‑controlled cold wallet during a post‑audit in early 2026.
- The disappearance follows a larger 320‑bitcoin loss in 2025, prompting a nationwide review of crypto custody practices.
- Investigation is being carried out by the Gyeonggi Northern Provincial Police Agency; the wallet itself was not stolen, implying an authorized transfer.
- South Korea’s Supreme Court has classified bitcoin as a seizure‑eligible asset, expanding law‑enforcement authority but also heightening the need for secure handling.
- The case underscores the urgent need for standardized, auditable custody solutions within government agencies to prevent future losses.
As the probe progresses, stakeholders in South Korea’s crypto ecosystem will be watching closely for lessons that could shape future custody standards and regulatory guidance for public-sector handling of digital assets.
Source: https://cointelegraph.com/news/seoul-police-22-bitcoin-missing-cold-wallet?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
