South Korea Arrests Two Over Seized BTC

South Korean police arrested two individuals over the alleged theft of 22 bitcoin from official custody, assets now worth about $1.5 million at current prices. The case exposes procedural weaknesses in how seized digital assets are stored and supervised.

The Gyeonggi Northern Provincial Police Agency took the suspects into custody on Feb. 25, according to local outlet JoongAng Ilbo. They were charged with violating the Information and Communications Network Act for allegedly leaking bitcoin from a device held at Gangnam Police Station. The coins had been seized in November 2021 during an investigation tied to the A Coin Foundation.

How Did Seized Bitcoin Leave Police Custody?

According to the report, authorities stored the confiscated assets on a cold wallet provided by the A Coin Foundation itself, rather than on a state-managed device. The suspects, reportedly linked to the foundation, are believed to have accessed the wallet using its mnemonic recovery phrase. The disappearance of the 22 BTC was only recently discovered, roughly five years after the original seizure.

[단독] 경찰 분실한 코인 20억…”제가요?” 의문의 여성에 있었다 | 중앙일보

25일 중앙일보 취재를 종합하면, 강남서는 A코인을 발행한 재단 측이 ”재단에서 보유하던 A코인이 7억개(당시 시세 기준 48억원 상당) 가까이 사라졌다”며 컴퓨터 등 이용사기 혐의 등으로 불상의 인원을 고소한 사건을 수사 중이던 지난 2021년 11월 콜드 월렛에 담긴 비트코인 22개를 임의제출 형식으로 확보했다. 복수의 제보자에 따르면 경찰이 이 비트코인을 증거물로 확보할 당시 경찰이 소유한 콜드 월렛(Cold Wallet)에 옮기지 않고 A코인 해킹 사건의 고소인인 A코인 재단 측이 제공한 콜드 월렛을 받아 보관했다고 한다. 콜드 월렛은 인터넷과 완전히 분리돼있는 USB 형태의 가상자산 지갑으로, 콜드 월렛을 최초 구입할 당시 설정된 니모닉(Mnemonic·기억술) 키만 알고 있으면 실물 콜드 월렛을 분실하더라도 그 안에 들어있는 가상자산을 다른 지갑으로 복구할 수 있다.

중앙일보손성배

The episode unfolds against a broader backdrop of increasing crypto-related enforcement in South Korea. As digital asset seizures grow in size and frequency, custody procedures have become as critical as investigative work. The reported use of a plaintiff-supplied wallet contrasts with standard evidence handling protocols that typically require independent, secured storage. Could this case prompt tighter national standards for digital asset custody?

“We are investigating the circumstances surrounding the virtual asset leak, and as the investigation is still ongoing, we cannot confirm any specifics,” a Gyeonggi Northern Provincial Police Agency official said, according to JoongAng Ilbo.

The report did not state whether the 22 BTC has been recovered.

The case also intersects with prior misconduct. The former senior superintendent who led the 2021 A Coin investigation is serving an 18-month prison sentence after being convicted on bribery charges related to the foundation in August 2024. Further disclosures from prosecutors may clarify whether systemic reforms will follow as scrutiny shifts to evidence management practices.