South Korean Police Nab Suspects in Bitcoin Theft Case
In 2026, police from Gyeonggi North District in South Korea arrested two individuals suspected of stealing 22 Bitcoin, worth approximately $1.5 million. This digital asset was originally seized during an investigation into a hacking case linked to an organization in 2021.
Security Lapses Enable Theft
According to the investigation, the assets were not stored in a government-regulated hardware wallet at the time of seizure. Instead, the organization’s cold wallet was used, creating a vulnerability that allowed the suspects to transfer the assets illegally using the wallet’s recovery phrase.
How the Theft Was Executed
Authorities revealed that the suspects exploited the recovery phrase of the cold wallet to remotely manipulate the assets via information and communication networks. This case exposed major gaps in how digital evidence was handled by law enforcement agencies at the time.
Corruption Linked to the Case
Notably, the former police officer who led the original hacking case in 2021 was sentenced to 18 months in prison in 2024 for accepting bribes from the organization. This corruption is believed to have directly contributed to the mishandling of the digital assets.
Implications for Crypto Asset Management
The incident highlights the risks associated with handling digital assets within the judicial system and raises serious questions about law enforcement's preparedness to manage crypto assets in the digital age. Experts are calling for stricter regulatory frameworks to prevent future breaches and ensure asset security.