TLDR
- Dunamu wins a one-year deal to safeguard crypto seized by South Korean police.
- Upbit Custody will manage confiscated digital assets under round-the-clock controls.
- Cold wallets and multi-signature tools will secure assets held for police cases.
- Bitcoin losses increased pressure for stronger police crypto custody controls.
- South Korea shifts seized crypto storage to Dunamu after a competitive public tender.
South Korea’s National Police Agency has chosen Dunamu to manage digital assets seized during criminal investigations. The Upbit operator secured a one-year contract through the government’s competitive public procurement process. The agreement strengthens police crypto custody after earlier asset losses raised concerns over security controls.
Dunamu Secures One-Year Police Crypto Custody Deal
Dunamu won the project through an open tender managed by South Korea’s Public Procurement Service. The company received the highest technical score and became the preferred negotiating bidder on July 8. Subsequent technical negotiations cleared the final procurement stage and confirmed Dunamu as the contractor.
The agreement covers storage and management services for cryptocurrencies and other digital assets seized by police. Earlier procurement records valued the one-year contract at about 267 million won. That amount equaled roughly $195,000 based on reported exchange rates during the bidding process.
Dunamu will provide the service through Upbit Custody, its dedicated institutional digital asset custody platform. The company operates a round-the-clock monitoring and response infrastructure for the service. The system continues operating during nights, weekends, and public holidays without interrupting custody controls.
Upbit Custody Adds Offline Security and Key Controls
Upbit Custody stores seized digital assets through a completely offline cold wallet environment. The platform isolates custody systems from the public internet and reduces exposure to external attacks. Dunamu also applies several key-management methods designed to reduce risks involving compromised credentials.
The platform combines Multi-Party Computation with Distributed Key Generation to strengthen private key management. Dunamu also uses multi-signature technology to add authorization requirements before approved asset transfers. These controls divide key responsibilities and reduce dependence on one person or security credential.
Upbit Custody also allows separate wallet structures for different assets and operational purposes. This setup helps authorities organize seized holdings without combining every digital asset within one wallet. Dunamu will support those custody functions through continuous monitoring and established internal security procedures.
Previous Bitcoin Losses Increased Custody Pressure
South Korean authorities faced increased scrutiny after several cases involving missing cryptocurrencies held during criminal investigations. Gangnam Police confirmed in February that 22 Bitcoin had disappeared from police custody. Authorities valued those assets at about 2.1 billion won when they disclosed the incident.
Police originally received the Bitcoin during a 2021 investigation before discovering an unauthorized transfer. The physical cold wallet remained under police control during the reported loss. Investigators later reviewed access records, key-management procedures, and blockchain transactions linked to the missing assets.
Other reported Bitcoin losses also increased pressure for stronger digital asset custody across law enforcement agencies. Authorities consequently sought an external provider with dedicated infrastructure and continuous security controls. Dunamu will now manage seized police digital assets through Upbit Custody for the contract’s one-year period.
