South Korea's authorities have made two arrests in connection with the alleged theft of 22 BTC from police evidence. The suspects, both in their 40s, are believed to have used a mnemonic seed to access the funds under the Information and Communications Network Act. The incident has raised concerns about governance risks in the handling of seized virtual assets.
The National Police Agency has launched an internal probe into the chain-of-custody records and wallet access histories to identify control failures. The agency has also ordered an audit of all confiscated virtual assets, which is expected to provide more clarity on the incident. As a result, authorities are reviewing the handling of seized crypto assets and exploring measures to strengthen custody integrity.