South Korean Authorities Launch Emergency Audit of Public Crypto Holdings Following Bithumb Exchange Mishap

South Korean authorities have initiated an emergency audit of cryptocurrency holdings managed by public institutions following a series of high-profile digital asset losses and exchange failures. The move comes after bitcoin seized by police mysteriously disappeared and Bithumb, one of the country's largest exchanges, suffered a dramatic accounting mishap.

Deputy Prime Minister and Finance Minister Koo Yun-cheol has ordered a comprehensive review of how state agencies store and monitor confiscated digital assets. The audit will scrutinize all cryptocurrency holdings acquired through tax collection, criminal investigations, and legal seizures, with particular focus on management practices and security protocols.

Major regulatory bodies including the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) will lead the assessment. Investigators will examine safeguarding methods, record-keeping procedures, and administrative controls across public institutions holding crypto assets.