Key Highlights
- Dunamu secures one-year contract to protect digital assets confiscated by South Korean law enforcement.
- The Upbit Custody platform will handle seized cryptocurrencies with 24/7 security monitoring.
- Multi-signature technology and cold storage wallets will protect assets in criminal cases.
- Previous Bitcoin disappearances prompted authorities to seek enhanced custody solutions.
- Competitive government procurement process selected Dunamu as the winning bidder.
The National Police Agency of South Korea has selected Dunamu to handle the storage of digital assets confiscated in criminal cases. The parent company of Upbit obtained this one-year arrangement via the country’s competitive government procurement system. This decision comes after previous incidents of asset disappearances highlighted the need for improved security measures in police cryptocurrency storage.
Government Procurement Process Awards Contract to Dunamu
Dunamu emerged victorious from an open bidding process administered by South Korea’s Public Procurement Service. The firm achieved the top technical evaluation score and was designated as the leading candidate for negotiations on July 8. Following successful technical discussions, Dunamu cleared all procurement requirements and was formally awarded the contract.
The contract encompasses custody and management solutions for cryptocurrencies and additional digital assets confiscated by law enforcement authorities. Government procurement documentation indicated the one-year agreement was valued at approximately 267 million won. This figure represented around $195,000 according to prevailing exchange rates during the tender period.
The services will be delivered through Upbit Custody, Dunamu’s specialized institutional-grade digital asset storage solution. The platform operates continuous surveillance and incident response capabilities around the clock. Security operations remain active during overnight hours, weekends, and national holidays to maintain uninterrupted asset protection.
Advanced Security Infrastructure Protects Seized Assets
Upbit Custody maintains confiscated digital holdings in a fully offline cold storage environment. The infrastructure keeps custody systems completely disconnected from internet access, minimizing vulnerability to external cyber threats. Dunamu implements multiple key-management protocols engineered to mitigate risks associated with credential compromise.
The custody solution integrates Multi-Party Computation alongside Distributed Key Generation to enhance private key protection. Additionally, multi-signature technology requires multiple authorizations before any asset movement can occur. These security layers distribute key control responsibilities and eliminate single points of failure in credential management.
The platform enables segregated wallet architectures for various asset types and operational requirements. This configuration allows law enforcement to maintain organized records of seized holdings without consolidating all digital assets into a single wallet. Dunamu will deliver these custody capabilities through ongoing surveillance and rigorous internal security protocols.
Asset Disappearances Drive Demand for Enhanced Security
South Korean law enforcement agencies encountered heightened scrutiny following multiple incidents of missing cryptocurrencies during criminal proceedings. The Gangnam Police Department reported in February that 22 Bitcoin had vanished from their custody. Officials estimated the value of these missing assets at approximately 2.1 billion won at the time of disclosure.
The Bitcoin in question had been seized during a 2021 criminal inquiry before authorities detected an unauthorized transaction. The hardware cold wallet reportedly remained in police possession throughout the period when the loss occurred. Subsequent investigations examined access logs, key-handling protocols, and blockchain records connected to the disappeared funds.
Additional reported cryptocurrency losses amplified calls for enhanced digital asset security across law enforcement organizations. This pressure led authorities to pursue an external custody provider with specialized infrastructure and continuous protection mechanisms. Dunamu will now oversee police-seized digital assets through the Upbit Custody platform for the duration of the one-year contract term.
