South Korea is moving seized crypto to Upbit Custody after several Bitcoin thefts exposed serious security problems within its police departments.

Until now, individual investigators were responsible for managing seized crypto using their own hardware wallets. Under the new system, the assets will be transferred to Upbit and stored in offline wallets with additional security measures. Upbit will also provide 24/7 support and guarantee compensation for any losses.

The move follows several incidents where Bitcoin went missing, including one case where investigators lost access to a large amount of seized Bitcoin after someone got hold of the wallet's recovery phrase.

My take: It's quite ironic that authorities investigating crypto crimes have struggled to secure the Bitcoin they seized. It also shows that even government agencies aren't immune to basic security mistakes when it comes to crypto.