South Korean police have arrested two individuals in connection with the alleged theft of 22 bitcoin that had been held as evidence by the Gangnam Police Station, law enforcement officials said. The arrests were announced on February 25, 2026, by the Gyeonggi Northern Provincial Police Agency, which said it was questioning the two suspects on suspicion of embezzling the digital assets from the police station’s custody. The seized bitcoin was originally taken as part of a 2021 investigation and had been stored as evidence.
The bitcoins involved in the case are valued at roughly ₩2.1 billion, about $1.5 million at current market rates. Authorities said the disappearance of those assets came to light during a nationwide audit of how law enforcement agencies in South Korea handle seized virtual assets. That audit was triggered after other incidents of missing cryptocurrency from official custody were reported earlier this year.
Police said the 22 bitcoins had been seized in November 2021 during an investigation into a hacking-related matter and were being stored offline in what was described as a cold wallet. The physical storage device remained in police possession, but investigators found that the bitcoin it contained had been transferred to an external address without authorization. At this stage, authorities have not publicly confirmed whether the stolen bitcoin has been recovered.
The investigation has prompted scrutiny of internal procedures for securing digital assets held by law enforcement. Officials said that existing protocols were not strictly followed in this case and that the audit is part of broader efforts to improve controls and accountability in the custody of virtual assets. Discussions are underway on strengthening safeguards, including more stringent custody arrangements and oversight for seized cryptocurrency.
The arrests represent a significant development in ongoing inquiries into the disappearance of the bitcoin from police evidence storage. Law enforcement agencies have taken over the case and are continuing to investigate how the theft occurred. Authorities said they will also work on updating procedures to prevent similar incidents in the future, but did not provide a timeline for any changes or detail specific planned measures.
This incident follows other cases involving missing bitcoin from official custody in South Korea, which have raised questions about the handling and security of digital assets by police and prosecutorial agencies. A separate missing asset report earlier this year involving a larger amount of bitcoin had triggered the initial nationwide audit of virtual asset custody practices.