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South Korean Police Authorities Face Bitcoin Loss Amid Internal Investigation

South Korean police are grappling with a significant security incident involving lost bitcoin.

A total of 22 BTC, valued at approximately $1.5 million, has been unaccounted for since it was held in a USB cold wallet.

This bitcoin was initially seized in November 2021 during a criminal investigation.

The discovery of the disappearance occurred amid a nationwide scrutiny of law enforcement agencies prompted by another recent incident involving 320 BTC.

Korean authorities confirmed the bitcoin was not physically stolen, but rather siphoned off from the wallet.

The Gangnam police stated that the internal investigation failed to detect the leak for an extended period due to a suspension of the initial investigation.

An ongoing probe by the Gyeonggi Bukbu Provincial Police Agency seeks to uncover the circumstances surrounding the disappearance.

Reports suggest potential internal involvement, though officials have not provided detailed comments on the investigation's progress.

This situation highlights the broader issues of security and accountability within policing in the rapidly evolving crypto landscape.

As interest in cryptocurrencies continues to grow, the integrity of law enforcement's management of seized assets remains critically important.