Cryptocurrencies in South Korea

Main article: Cryptocurrencies

Chronicle

2026:22 confiscated bitcoins stolen from Seoul police

In mid-February 2026, it became known that 22 bitcoins were stolen from the Seoul police, which had previously been confiscated as part of one of the investigations. The value of the stolen assets as of February 24, 2026 is about $1.4 million.

According to network sources, the cryptocurrency disappeared from a cold wallet at the Kannam police station. South Korean authorities are investigating the theft. Law enforcement officers are trying to establish the circumstances of the incident and the identity of the cybercriminals involved in the withdrawal of funds.

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Фото: Freepik

It is known that the missing bitcoins were confiscated as material evidence during a criminal investigation in 2021. The theft was revealed during a nationwide audit initiated after the theft of 320 bitcoins (about $21.76 million) in the Gwangju District Prosecutor's Office. Then the cause of the incident was a phishing attack, during which the attackers managed to take possession of the closed keys.

Cryptocurrencies are "subject to confiscation" under South Korea's Criminal Procedure Act. The country's Supreme Court confirmed that bitcoins and other digital assets stored on centralized exchanges can be seized by investigators in criminal cases. The decision means Korean users holding their cryptocurrencies on the exchanges may have their assets frozen if they are linked to alleged criminal prosecution. This measure is aimed at combating money laundering and preventing fraudulent schemes based on the use of digital assets. However, cases of the loss of confiscated bitcoins from cold wallets of law enforcement officers indicate that the current requirements for the security of storage of such assets need to be tightened.^[1]

2023: South Korea creates separate government agency to fight cryptocurrency crimes

On July 26, 2023, South Korean authorities announced the formation of an interdepartmental unit to investigate crimes related to the use of cryptocurrency assets. The structure is called the Joint Investigation Center for Crypto Crimes.

The creation of a new government agency is dictated by a surge in illegal activities in the cryptocurrency market and the lack of legal protection of investors. The South Korean prosecutor's office said in a statement that the joint investigation team on crypto crimes will include about 30 employees of various departments. These are, in particular, experts from the judicial, financial, tax and customs authorities.

South Korean authorities set up Joint Investigation Centre for Crypto Crimes

Virtual assets are investment products that can already be compared with stocks, but market participants are practically deprived of legal protection due to imperfect laws and systems, the prosecutor's office notes.

It is assumed that until the cryptocurrency market is regulated by law, the investigation team will fill the gap in investor protection. Specialists of the new structure will have to track the cryptocurrency market with high volatility, as well as deal with the illegal trade in digital assets, tax evasion, money laundering and unauthorized transfers of foreign currency.

South Korea's cryptocurrency market, which was one of the fastest growing in the world, contracted 66% in terms of capitalization in 2022 due to a number of global and domestic events affecting investment programs. At the same time, the security situation is deteriorating. The damage from crimes related to cryptocurrencies grew in South Korea by 118% in five years and in 2022 reached 1.02 trillion won (approximately $800 million at the exchange rate as of July 26, 2023). On local cryptocurrency exchanges, the number of suspicious transactions jumped by 1263% in 2022 - to 900 against only 66 in 2021.^[2]

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