South Korean Police Outsource Crypto Storage to Upbit Parent

The agreement follows a competitive tender process where Dunamu outperformed rivals like Korea Digital Asset Custody and Hecto Wallet One. With a technical evaluation score of 94.14, the firm secured the 267 million won ($195,000) contract to provide round-the-clock custody. The move marks a strategic shift for the agency, which previously struggled to safeguard digital evidence internally.

Upbit Custody will utilize a security architecture centered on 100% offline cold wallets, isolated entirely from the public internet. The system employs Multi-Party Computation (MPC), Distributed Key Generation (DKG), and multi-signature protocols to eliminate single points of failure. By segregating assets into specific wallets, the firm aims to mitigate the risks that plagued previous police efforts.

Pressure to modernize storage mounted following multiple high-profile security lapses. In February, the Gangnam Police Station reported that 22 Bitcoin, valued at approximately 2.1 billion won, vanished from a wallet that appeared physically secure. Additional losses reported at the Gwangju District Prosecutors’ Office and other regional units prompted authorities to seek an external partner capable of providing constant monitoring and professional key management. While some industry observers questioned if the tender’s stringent requirements favored large exchanges over smaller providers, the police agency maintains the selection process was transparent and fair.