A major scandal has erupted in South Korea over the disappearance of bitcoins that were used as evidence in a criminal case in Seoul. During an internal audit, police discovered that 22 BTC had vanished from a cold wallet, with a market value of approximately $1.5 million.
This is reported by Finway
Internal Investigation and Possibility of Insider Access
The bitcoins were handed over to the police back in 2021 as part of one of the cases. The investigation was prolonged, and the assets were under the control of law enforcement on a special device for storing cryptocurrency. Throughout these years, it was believed that the coins were stored securely.
However, during a recent inventory check, it was found that the funds had been transferred to an external address. No physical theft of the device was recorded, raising suspicions of unauthorized access to asset management by personnel within the police unit.
“Later, the internal audit revealed that the funds had been transferred to an external address. No physical theft of the storage device was recorded, indicating possible insider access to asset management, according to the police.”
The investigation into the circumstances of the incident has been transferred to another police unit. A review of the transaction chain is currently underway, analyzing the actions of personnel with access to the assets and assessing the procedures for storing and accounting for digital evidence.
Security Issues in Cryptocurrency Storage
This case has gained particular resonance in light of a recent incident involving the disappearance of 320 BTC that were under prosecution. In response, a nationwide audit of cryptocurrency storage systems seized during criminal proceedings has begun.
Experts emphasize that the increasing number of such incidents is linked to the inadequacies of regulations and technical standards for storing digital assets. Since transactions on the blockchain are irreversible, and control over private keys is a key aspect of security, even minor breaches can lead to significant losses.
The South Korean government has already announced its intention to strengthen accounting procedures and access control for crypto assets to prevent similar incidents from recurring. This case has highlighted the need to improve the approach to handling digital evidence in criminal cases.