Upbit Custody Wins 1-Year Crypto Custody Contract for Korea Police Seized Assets
South Korea’s National Police Agency has awarded an open tender for a one-year crypto custody contract to Dunamu (operator of Upbit). The custody and management of seized digital assets will be handled via Upbit Custody, using 100% offline cold wallets, 24/7/365 monitoring, and layered security with MPC, DKG and multi-signature controls. Wallets are also separated by asset type.
The deal was awarded through the Public Procurement Service, with Dunamu receiving the highest technical evaluation score (94.14) and a contract value of 267 million won (about $195,000) for one year. The appointment follows prior concerns over police-held crypto, including a February incident in which 22 BTC went missing from custody.
For traders, this is mainly a crypto custody contract and security-governance update rather than a direct market catalyst. Still, stronger institutional custody practices can shift sentiment around exchange and state-controlled holdings and their perceived operational risk.
Neutral
This news is unlikely to move spot prices of any major coin in the short term because it does not change trading availability, supply, or network fundamentals. Instead, it improves crypto custody contract governance around government-held seized assets, including 100% offline cold wallets and advanced controls (MPC/DKG/multi-signature). That can slightly improve sentiment about operational security and reduce perceived institutional counterparty risk.
In the longer run, repeated transparency and stronger controls after prior custody incidents (e.g., missing BTC from police custody) could support a more stable risk premium for exchange/institutional handling of large, state-controlled balances. However, since the assets are seized and not entering the open market as an active flow, the expected impact on price itself remains mostly neutral.