TLDR
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Upbit operator Dunamu leads Korea’s seized crypto custody bid.
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Police plan to outsource storage of confiscated digital assets.
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Dunamu scored first with strong price and technology marks.
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Tender follows past Bitcoin losses by Korean law agencies.
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Smaller custody firms questioned the tender’s strict rules.
Dunamu, the operator of Upbit, has moved ahead in Korea’s police crypto custody tender. The company ranked first for a one-year contract covering seized digital assets. The deal places Upbit’s parent near a sensitive government custody role.
Dunamu Tops Police Custody Tender
South Korea’s Public Procurement Service disclosed the bidding result through Nara Marketplace on July 8. Dunamu ranked first for the National Police Agency’s seized digital asset storage project. The contract covers assets police seize during criminal investigations.
The project carries a value of 267 million won, or about $195,000. It will run for one year after the agency completes negotiations. If talks succeed, Dunamu will win without talks with other bidders.
Dunamu received a total score of 94.73 points in the evaluation. The Upbit operator earned 10 points for price and 84.73 points for technology. Korea Digital Asset Custody followed with 91.29 points, while Hecto Wallet One scored 87.27 points.
Tender Rules Raise Industry Questions
The custody plan follows earlier losses involving seized Bitcoin held by Korean authorities. Reports linked the policy shift to a loss at the Gwangju District Prosecutors’ Office. Police also confirmed a separate Bitcoin loss in 2022.
The National Police Agency wants an outside institution to manage seized cryptocurrencies. The arrangement aims to improve storage controls and reduce operational risks. It also shows how police now treat crypto custody as a specialist function.
Some industry participants questioned the tender conditions. The agency required immediate custody acceptance, full-time response capacity, and compensation guarantees after hacking losses. Those rules suited a large operator with Upbit’s scale and existing systems.
Upbit Parent Faces Wider Regulatory Backdrop
Dunamu’s position also reflects its market role in South Korea’s crypto sector. Upbit already handles large trading volumes and many listed digital assets. That experience likely strengthened Dunamu’s technical case during the tender review.
Some custody firms wanted deeper checks on security systems and operating facilities. Local reports said the final evaluation did not include a proposed on-site inspection. Even so, the police agency maintained that it selected the operator through competition.
The decision comes while Dunamu handles other regulatory matters. The Upbit parent recently delayed its planned all-stock share swap with Naver Financial again. The company moved the completion date to December 31 as approvals remain pending.
Dunamu now enters negotiations for a custody role tied directly to criminal investigations. If completed, the contract will place seized crypto under an external manager for one year. For Upbit, the deal adds a government-linked custody mandate to its broader business profile.
