South Korean police lost $1.4 million worth of Bitcoin due to improper handling; two suspects have been arrested.

Officials at the Gangnam Police Station in Seoul, South Korea, lost 22 bitcoins, worth approximately $1.4 million at current prices, after failing to comply with cryptocurrency custody guidelines. The investigation revealed that police did not deposit the assets into a controlled cold wallet as required, instead allowing a third party to manage them without possessing the mnemonic phrase. In 2022, the third-party company provided the mnemonic phrase to an individual named Jeong, leading to the loss of the funds. Two suspects have been arrested by the Gyeonggi Northern Provincial Police Agency. Previously, a member of the original hacking investigation team was indicted last year on bribery charges; the third-party company allegedly bribed officials to ensure the investigation proceeded in their favor. Furthermore, the Gwangju District Prosecutors' Office uncovered another case involving the loss of 320 bitcoins, worth approximately $21 million, during its review.