Case Background
According to reports, South Korean authorities confiscated 22 Bitcoin following a cryptocurrency exchange hack in November 2021. However, due to procedural mismanagement, the assets were stored in a third-party controlled cold wallet, leaving investigators without access to the recovery phrase.
Event Details
The wallet's recovery phrase was later handed over to an individual referred to as 'Mr. Jeong' as part of a loan agreement. Surprisingly, the breach remained undetected for four years, only coming to light during an audit related to another case involving the disappearance of 320 Bitcoin from Gwangju District Prosecutors’ Office.
Investigation Status
Authorities have since arrested two suspects in connection with the theft. The incident has sparked widespread concerns over the handling and storage of digital assets by law enforcement agencies.