Deputy Prime Minister and Finance Minister Koo Yun-cheol ordered an urgent review and broad reforms of how government and public institutions hold digital assets after Seoul police in Gangnam lost access to 22 BTC (≈$1.4M) seized in 2022 by allowing a third-party firm to manage the funds without retaining private keys. Two suspects have been arrested and prosecutors are investigating possible bribery. The finance ministry will inspect custody practices with the Financial Services Commission and Financial Supervisory Service and implement stronger security measures, though no detailed safeguards have been announced. The incident highlights operational risks in public-sector handling of crypto and follows other recent lapses such as a Bithumb systems error.

Police lost access to 22 BTC after permitting a third-party firm to manage seized funds without private keys; two suspects arrested and prosecutors are probing possible bribery; the finance minister ordered inspections and pledged reforms but no detailed safeguards have been announced.