Dunamu Secures Contract to Custody Seized Cryptocurrencies for South Korean Police

Dunamu Secures One-Year Custody Contract

Dunamu has officially secured a one-year contract to custody digital assets seized by South Korea’s National Police Agency. This achievement follows the successful completion of the agency’s public tender process, where Dunamu emerged as the top candidate based on a comprehensive technical evaluation.

Details of the Custody Arrangement

The contract will see seized cryptocurrencies stored and managed through Upbit Custody. This service employs offline cold wallets and boasts a continuous, 24/7 monitoring system, ensuring the assets are secure around the clock. The decision to grant this contract stems from previous incidents where Bitcoin assets went missing while under police custody, highlighting the need for greater oversight and security.

Negotiation and Evaluation Process

According to Dunamu, the contract was finalized after extensive negotiations, culminating in a public announcement on August 7, 2026. The bidding process commenced earlier in the year, with Dunamu moving from a preferred bidder status to being awarded the final contract after achieving a technical evaluation score of 94.14.

Investment in Security Technology

Dunamu’s Upbit Custody platform utilizes advanced technologies such as Multi-Party Computation (MPC), Distributed Key Generation (DKG), and multi-signature wallets. This framework is designed to separate assets by type and intended use, significantly mitigating risks associated with potential private key compromises.

Response to Previous Incidents

The move to engage an external custody provider follows a troubling history of missing digital assets in South Korean law enforcement. Notable incidents include the loss of 22 Bitcoin, valued at over 2.1 billion won (~$1.6 million), and significant amounts from the Gwangju District Prosecutors’ Office. In light of these events, the National Police Agency emphasized the importance of securing custody responsibilities with a qualified external institution.

Regulatory and Market Implications

The finalized agreement empowers Dunamu to manage the custody of seized cryptocurrencies, instilling confidence in South Korea’s digital asset management practices. As this sector continues to grow, such developments are crucial in enhancing public safety and trust in law enforcement’s ability to manage digital assets responsibly.