Key Highlights
- Gangnam Police Station lost 22 Bitcoin (worth approximately $1.5 million) from a secure USB cold wallet, uncovered during a nationwide audit.
- The loss echoes a bigger incident at Gwangju Prosecutors’ Office, where 320 Bitcoin vanished in 2025.
- Northern Gyeonggi Provincial Police are investigating possible internal involvement or negligence.
The Gangnam Police Station in Seoul, South Korea confirmed the disappearance of 22 Bitcoin (BTC), valued at approximately 2.1 billion won ($1.5 million) from its custody. The funds were a part of a seizure from a 2021 investigation which have now vanished from a secure cold wallet without any sign of physical theft.
As reported by Dong-A media, a local daily news publisher in the country, the loss came to light during a nationwide audit of police stations’ virtual asset management protocols. It was triggered by a similar high-profile incident at the Gwangju District Prosecutors’ Office just months earlier where nearly 320 Bitcoin were lost in a similar way.
Police officials disclosed that the Bitcoin were voluntarily surrendered to Gangnam investigators in November 2021 as part of a criminal probe that was later suspended. The assets remained in storage until the recent inspection revealed they had been drained from the USB-style cold wallet, a device designed for offline security to prevent hacks.
The Northern Gyeonggi Provincial Police Agency has reportedly taken charge of the investigation, focusing on the leak’s mechanics and whether any officers or staff played a role in the disappearance. Authorities say that the incident underscores the growing challenges of safeguarding cryptocurrencies in an era of sophisticated cyber threats and regulatory crackdowns in South Korea.
Echoing a pattern of losses in law enforcement
This is not the first time South Korean authorities have faced embarrassment over mishandled cryptocurrencies. Last December, the Gwangju District Prosecutors’ Office reported the loss of 320 Bitcoins, worth an estimated 70 billion won at the time ($48 million), seized in mid-2025 during a criminal case.
This case, involving five inspectors now under audit for potential criminal liability, prompted the National Police Agency to mandate checks across all frontline units. Gangnam’s discovery emerged from this broader review, highlighting what critics call “serious holes” in security systems for managing seized virtual assets.
The news has sparked outrage and skepticism on social media, with users questioning whether the “losses” mask internal theft or gross negligence. On X, posts lambasted the police, with one user quipping, “Lost? Or conveniently transferred to a private wallet?”
As the probe unfolds, police have declined to provide further details, citing the ongoing nature of the investigation. Authorities insist they are committed to strengthening protocols, but for now, the episodes serve as a cautionary tale for global law enforcement grappling with the digital frontier.
Also read: Bhutan Continues Strategic Bitcoin Sell-Off With Latest 100 BTC Sale
