South Korea’s National Police Agency has selected Dunamu, the company behind Upbit, to manage and store digital assets seized during criminal investigations.
Dunamu secured the one-year custody contract after winning the agency’s public bidding process. The company will handle seized cryptocurrencies through its Upbit Custody platform after completing technical negotiations with the police agency.
According to Dunamu, it received the highest technical evaluation score during the selection process before becoming the final contractor. The agreement covers the storage and management of digital assets collected by police authorities.
Upbit Custody to secure seized cryptocurrencies
Under the contract, seized digital assets will be stored using Upbit Custody’s security system. Dunamu said the platform uses offline cold wallets, keeping assets disconnected from the internet to reduce security risks.
The system also includes advanced protection methods such as Multi-Party Computation (MPC), Distributed Key Generation (DKG), multi-signature security, and separate wallets for different types of assets.
Dunamu said its custody service operates with 24-hour monitoring throughout the year, including weekends and holidays, to ensure continuous protection of stored assets.
The company said it plans to use its security technology and operational experience to support South Korea’s digital asset management system.
Contract followed competitive bidding process
Dunamu was selected after competing with other digital asset custody providers. The company received the highest overall evaluation score, ranking above other bidders during the review process.
The bidding requirements included immediate management of seized cryptocurrencies, continuous response services, and full responsibility if assets were lost due to security problems.
Some industry participants questioned whether these requirements favored large companies with existing exchange infrastructure. However, the National Police Agency said the process was conducted fairly and followed standard competitive procedures.
Security concerns increased after previous crypto losses
The new custody agreement comes after several cases where government-held cryptocurrencies were reported missing.
Earlier incidents involving lost Bitcoin raised concerns about how authorities were storing and protecting seized digital assets. In one case, police discovered that Bitcoin held during an investigation had been moved without authorization, leading to questions about private key management and security procedures.
These events increased pressure on authorities to improve the protection of confiscated cryptocurrencies and use stronger custody systems.
With the new agreement, seized digital assets from police investigations will now be managed through Upbit Custody for the next year, with the goal of improving security and reducing the risks linked to digital asset storage.
