The South Korean National Police Agency has finally handed over the security of their crypto evidence to the private sector. Dunamu, the company behind the Upbit exchange, won an open tender to store the digital assets seized by law enforcement. The deal is valued at approximately 267 million won, or equivalent to $195,000, with a contract duration of one year.
This step was taken as a direct response to the public trust crisis regarding how authorities manage seized crypto assets. South Korean law enforcement agencies have repeatedly been breached from the inside. In February 2026, 22 BTC reportedly vanished without a trace from the Gangnam Police Station. This case adds to a long list of similar incidents, including the loss of 320 BTC from the Gwangju District Prosecutors’ Office, as well as a series of other Bitcoin evidence losses in 2022.
Full Security Technology
Dunamu’s appointment was finalized after they secured preferred bidder status on July 8, 2026, and completed the technical negotiation phase. In the evaluation process, Dunamu scored the highest technical rating of 94.14 points. They outperformed their two main competitors: KDAC, which scored 91.29, and Hecto Wallet One, with 87.27 points.
In the future, all seized crypto assets will be stored in the Upbit Custody facility. The implemented security standards mandate the use of offline systems or 100% cold wallets. This infrastructure is also supported by advanced encryption technologies such as Multi-Party Computation (MPC), Distributed Key Generation (DKG), multi-signature, and wallet segregation.
Beyond the multi-layered defense system, the tender winner is required to deploy a monitoring team active 24 hours a day, 7 days a week. This surveillance must run uninterrupted, covering night shifts, weekends, and national holidays to ensure there is not a single second of security gaps.
Denial of Monopoly Accusations
The auction process has not been without criticism. A number of industry players questioned the tender clauses requiring service providers to have a 24-hour response system, instant custody facilities, and a full compensation obligation in the event of a hack. These strict requirements are considered burdensome for smaller companies and lean toward favoring established, major operators.
Responding to this, the National Police strongly denied allegations that the tender outcome was rigged from the start. They emphasized that the entire auction process was fair and competitive, prioritizing the security of the evidence above all else.
When law enforcement struggles to protect digital assets from insiders, hiring a private vault becomes the most logical choice. This is the police’s final effort to reassure the public that the evidence will remain intact until the judicial process is completed.
Reported by crypto.news.
Also read: How to Read Candlesticks for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
