South Korean Police Lose 22 BTC Held In Cold Wallet Since 2021

TLDR

Table of Contents

Seoul’s Gangnam Police lost 22 BTC from a cold wallet held since 2021.
The missing bitcoin is valued at approximately $1.5 million.
The USB storing the bitcoin was never physically stolen.
An internal probe is underway to check for possible insider involvement.

Seoul’s Gangnam Police Station has reported that 22 BTC, seized during a past investigation, was lost from a cold wallet. The wallet had been in police custody since November 2021. Local news outlet Donga first reported the incident, prompting authorities to confirm the case.

UPDATE: Gangnam Police has again discovered 22 BTC (~2.1B won) seized in a 2021 investigation were drained from a cold wallet while the device remained intact. Earlier, prosecutors had already lost 320 BTC in a separate incident. pic.twitter.com/DEObm9u4RG
— SolanaFloor (@SolanaFloor) February 13, 2026

The bitcoin, valued at around $1.5 million at current prices, was stored in a physical USB wallet. Police said the USB device itself was never stolen, indicating the funds were moved without physical theft.

Internal Probe Launched to Determine Cause

The Gyeonggi Bukbu Provincial Police Agency has started an internal investigation to find out how the bitcoin was drained. Officials are checking for any possible internal involvement. A representative of the agency declined to provide further details while the probe continues.

Police noted that the loss went undetected for several years because the related investigation had been suspended. The bitcoin was only noticed missing during a broader review of seized digital assets across multiple agencies.

Pattern of Seized Bitcoin Losses

The Gangnam incident comes after a similar case at the Gwangju District Prosecutors’ Office. Investigators there lost 320 BTC after mistakenly accessing a phishing website. Both cases have triggered nationwide inspections of police and prosecutorial agencies handling cryptocurrency.

Authorities are now reviewing evidence management procedures to prevent further losses. Police stated that the incidents underline the need for careful handling of seized digital assets.

Bitcoin Siphoned Despite Secure Storage

Police confirmed that the 22 BTC were drained even though the USB cold wallet was never physically removed. Cold wallets are generally considered highly secure because they are not connected to the internet. Investigators are analyzing possible ways the bitcoin could have been accessed.

Experts suggest that insider access or improper handling could have contributed to the loss. The police have not confirmed if any personnel have been implicated in the case.

Ongoing Investigation and Public Communication

Authorities have promised updates as the internal probe progresses. Seoul police continue to cooperate with national police and prosecutors to trace the missing funds.

The case highlights the challenges law enforcement faces in securing cryptocurrency. Police emphasized that no public safety risk arises from the incident and the investigation is strictly focused on asset recovery