Authorities in South Korea are investigating the disappearance of 22 Bitcoin that had been seized in a 2021 case and stored in a cold wallet at a police station in Seoul, according to local media reports.
The 22 BTC — worth roughly $1.5 million at current prices — were held by the Gangnam Police Station and were flagged as missing during a nationwide audit of digital asset custody procedures, the Seoul Economic Times reported Friday. Authorities said the funds appear to have been transferred externally, though the physical cold wallet device itself was not stolen.
The probe follows a separate incident at the Gwangju District Prosecutors’ Office, where 320 BTC — valued at approximately $21.3 million — went missing in August 2025. In that case, prosecutors attributed the loss to a leaked password stemming from a phishing attack.
Both incidents have intensified scrutiny over law enforcement’s handling of confiscated digital assets and the security measures used to safeguard them.
Audit reveals broader custody concerns
The National Police Agency reportedly launched a nationwide review of seized cryptocurrency holdings after the 320 BTC disappearance. During the audit, officials discovered that the 22 BTC voluntarily submitted to the Gangnam station in November 2021 were no longer in custody.
The case tied to the 22 BTC has since been suspended, with no clear resolution following the disappearance from the cold wallet.
The Gyeonggi Northern Provincial Police Agency is now investigating how the transfer occurred and whether any individuals were involved.
In a related development, Supreme Court of South Korea ruled in January that Bitcoin held on centralized exchanges can be subject to seizure by investigators.
Bitcoin has been formally recognized as an “object of seizure” under South Korea’s Criminal Procedure Act, as the court determined that it qualifies as electronic information with independent manageability, transferability and economic value.
The decision means that Bitcoin held by users on centralized exchanges in South Korea can be frozen or confiscated if it is linked to alleged criminal activity or ongoing legal proceedings.
