Authorities in Seoul have detained the de facto operator of a major virtual asset firm after he allegedly stole 22 Bitcoins stored at the Gangnam Police Station.
Arrest Details
Investigators executed an arrest warrant on January 28, issued by the Justice Ministry’s information-sharing committee and the special economic crimes joint task force. The roughly 40-year-old suspect now faces charges related to the theft. This case stands out among 40 high-profile probes into virtual asset companies, where key executives and staff have already undergone scrutiny.
Background of the Seized Bitcoins
The 22 Bitcoins originated from an overseas seizure in May 2022. Officials transported them to the Gangnam Police Station for safekeeping following a detailed investigation. Analysis confirmed these assets partly belonged to third parties, restoring legitimate ownership shares.
Prior Hacking Incident at the Firm
The company, recognized as a top-tier player in South Korea’s crypto sector, encountered a significant security breach in 2020. Individuals claiming victim status hacked into coins held as evidence at the same police station, prompting an immediate report and full-scale inquiry.
That probe recovered third-party holdings and led to the importation of the 22 Bitcoins for preservation.
Theft Execution
Despite secure protocols, the operator accessed a Cold Wallet hardware device from an open-source provider. This wallet safeguarded the assets via a mnemonic code, a master key enabling restoration of fragmented holdings. He extracted the Bitcoins, which carried an estimated value of 100 million Korean won at seizure— proceeds from exchange activities that fueled broader business operations.
Representatives for the company’s primary executive secured dismissal of their own detention warrant, citing no risk of evidence tampering.
