South Korean police arrest two over alleged theft of seized bitcoin from evidence: report
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South Korean police have arrested two individuals in connection with the theft of 22 BTC from police custody, according to local media, assets seized five years ago that were only recently discovered missing.
The Gyeonggi Northern Provincial Police Agency took the two suspects into custody on Feb. 25, charging them with violating the Information and Communications Network Act for allegedly “leaking” the coins from a device held at the Gangnam Police Station, news outlet JoongAng Ilbo reported on Wednesday.
The stolen bitcoin stash, worth about $1.5 million at current market prices, was originally secured in November 2021 during an investigation into the "A Coin Foundation", which had filed a complaint regarding the “disappearance” of 700 million units of its native token.
Per the report, police mishandled the chain of custody by storing the seized digital assets on a cold wallet provided by the foundation itself, the plaintiff in the case, rather than utilizing a secure, state-managed device. The arrested individuals are reportedly associated with the A Coin Foundation and are suspected of using the wallet’s mnemonic recovery phrase to facilitate the leak.
The report did not state that the 22 BTC had been recovered.
"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 in the report.
The original detective in charge of the 2021 A Coin hacking case at Gangnam Police Station, a former senior superintendent identified only as D, is currently serving a prison sentence, the report said.
He was indicted on bribery charges related to the A Coin Foundation and received an 18-month prison sentence in August 2024. Court documents cited in the report state that foundation officials provided bribes to expedite the hacking investigation and ensure it proceeded in their favor.
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