South Korean authorities are overhauling how seized cryptocurrencies are stored. The National Police Agency completed a draft directive to standardize digital asset evidence management.
This move follows recent cases where funds were lost while in government custody. Specifically, 320 Bitcoin vanished from the Gwangju District Prosecutors’ Office due to a phishing scam earlier this year.
Investigators discovered the theft during a routine inspection. Recovered assets were eventually sold, transferring approximately $21.5 million to the national treasury.
Despite five years of seizures totaling $36.5 million, the current budget for asset management remains critically low at $55,600.
Officials plan to finalize a private custody provider selection by the first half of 2026. Previous bidding attempts failed due to firm suitability concerns.