Key Highlights
- South Korea’s National Police Agency awards Dunamu a one-year cryptocurrency custody contract.
- The Upbit Custody platform will protect confiscated digital assets with 24/7 security monitoring.
- Advanced security features include cold storage, multi-signature authorization, and distributed key management.
- Previous incidents involving lost Bitcoin prompted authorities to seek professional custody solutions.
- Dunamu secured the deal through competitive government procurement scoring highest on technical evaluation.
The National Police Agency of South Korea has awarded a significant contract to Dunamu, the company behind the Upbit cryptocurrency exchange. This arrangement tasks Dunamu with safeguarding digital currencies confiscated during law enforcement operations. The deal follows a competitive government bidding process and addresses growing concerns about cryptocurrency security within police custody.
Contract Award Through Competitive Government Procurement
Dunamu emerged victorious from an open tender administered by South Korea’s Public Procurement Service. The company achieved the top technical rating among bidders and was designated as the preferred contractor on July 8. Following successful technical discussions and final review procedures, Dunamu officially secured the contract.
The arrangement encompasses complete storage and administration solutions for cryptocurrencies and digital tokens confiscated by law enforcement. Government procurement documents indicated the one-year service agreement carries a value of approximately 267 million won. This figure translated to around $195,000 according to currency conversion rates reported during the tender period.
Dunamu plans to deliver these services via Upbit Custody, its specialized institutional platform for digital asset protection. The company maintains continuous surveillance and incident response capabilities throughout the contract term. Security operations remain active during overnight hours, weekends, and national holidays to ensure uninterrupted protection.
Advanced Security Architecture for Seized Digital Assets
Upbit Custody employs completely offline cold wallet infrastructure to store confiscated cryptocurrencies. The system maintains total isolation from internet connectivity, significantly minimizing vulnerability to cyber threats. Dunamu implements multiple layers of cryptographic key protection designed to prevent unauthorized access even if individual credentials become compromised.
The custody solution integrates Multi-Party Computation alongside Distributed Key Generation to enhance private key security. Dunamu further deploys multi-signature authentication requiring multiple authorizations before any asset movement occurs. These measures distribute key custody responsibilities across multiple parties, eliminating single points of failure.
The platform enables creation of distinct wallet structures for various asset types and operational requirements. This architectural approach allows authorities to maintain organized records of seized holdings without consolidating diverse cryptocurrencies into unified storage. Dunamu supports these custody operations through constant monitoring and rigorous internal security protocols.
Asset Losses Drove Demand for Professional Custody Services
[[LINK_START_2]]South Korean[[LINK_END_2]] law enforcement agencies encountered heightened scrutiny following multiple incidents where cryptocurrencies vanished while under police control. Gangnam Police announced in February that 22 Bitcoin had gone missing from their custody systems. Officials estimated the value of those disappeared assets at approximately 2.1 billion won at the time of disclosure.
Authorities initially acquired the Bitcoin during a 2021 criminal probe before identifying an unauthorized transaction. The hardware cold wallet device remained in police possession throughout the period when the loss occurred. Investigation teams subsequently examined access logs, key handling protocols, and blockchain transaction records associated with the missing cryptocurrency.
Additional reported incidents involving lost Bitcoin intensified demands for improved digital asset custody capabilities across law enforcement organizations. Government authorities determined that engaging an external provider with dedicated infrastructure and professional security operations would better protect confiscated assets. Dunamu will now assume responsibility for managing police-seized digital currencies through Upbit Custody throughout the contract’s twelve-month duration.
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