TechFlow News, February 27: According to a Cointelegraph report, South Korean police have arrested two suspects in a case involving the theft of 22 bitcoins—valued at approximately $1.4 million. These bitcoins were originally seized by police in November 2021 from a cryptocurrency exchange hack. However, police violated regulations by storing the funds in a cold wallet controlled by a third party, and they themselves did not possess the wallet’s mnemonic phrase.
According to the report, the wallet’s mnemonic phrase was later handed over to an individual known as “Mr. Jeong” as part of a loan agreement. The case remained undetected for four years and was only uncovered during a nationwide audit of another incident—the disappearance of 320 bitcoins from the Gwangju District Prosecutors’ Office.
