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Police in South Korea Lose Control over Seized $1.4 Million Bitcoin: Investigation Underway

In an astonishing mishap, police from the Gangnam Police Station in Seoul have mishandled $1.4 million worth of Bitcoin.

This incident arises from their failure to follow standard procedures for securing seized cryptocurrency.

Officers had seized 22 Bitcoin from a hacking case back in 2021 but neglected to transfer the funds to a secure cold wallet.

Instead, they allowed the seized Bitcoin to remain in a wallet managed by a third-party firm, without possessing the master password required for access.

Due to this negligence, the Bitcoin went missing after an individual named “Jeong” moved the funds in 2022, using the secret phrase.

The police only became aware of the loss when it was revealed during an audit by the Gwangju District Prosecutors’ Office this year.

This significant blunder has raised serious concerns about the handling of virtual assets by law enforcement in South Korea.

Officials from the Gyeonggi Northern Provincial Police Agency confirmed that an investigation into the asset leak is currently ongoing.

This incident underscores the importance of stringent security measures when managing digital currencies and highlights a critical oversight in police protocols.

As the investigation unfolds, it remains to be seen what consequences will follow for the involved officers and their superiors.