Dunamu, the operator of South Korean cryptocurrency trade Upbit, has been chosen as the popular bidder for the Korean Nationwide Police Company’s one-year seized digital asset custody contract.
Abstract
- Dunamu has been chosen as the popular bidder to handle digital property seized by South Korea’s Nationwide Police Company underneath a one 12 months custody contract.
- Procurement outcomes positioned Dunamu forward of Ok DAC and Hecto Pockets One after it obtained the best mixed technical and worth analysis rating.
- Some business individuals questioned whether or not the tender necessities gave massive trade operators a bonus, whereas police stated the operator was chosen by a good aggressive course of.
Procurement information revealed by South Korea’s Public Procurement Service confirmed that Dunamu ranked first within the bidding course of for the challenge, which can switch custody of cryptocurrencies seized throughout police investigations to an exterior establishment.
As the popular negotiating bidder, Dunamu will safe the contract if negotiations are accomplished efficiently with out requiring talks with lower-ranked individuals.
Dunamu leads technical and worth analysis
Scoring launched by the procurement platform confirmed Dunamu receiving the utmost 10 factors for its bid worth and 84.73 factors within the technical evaluation, giving it a complete rating of 94.73. Korea Digital Asset Custody (Ok-DAC) positioned second with 91.29 factors, whereas Hecto Pockets One completed third with 87.27 factors.
Valued at 267 million gained (about $195,000), the contract will run for one 12 months and canopy the storage and administration of digital property confiscated by police throughout legal investigations.
Trade individuals, nonetheless, questioned whether or not the tender necessities made it troublesome for smaller custody suppliers to compete.
Based on native media reviews, the Nationwide Police Company required bidders to instantly settle for full custody of seized cryptocurrencies, preserve a round the clock response system, and assure full compensation if property have been misplaced as a result of hacking.
A number of business officers informed native media that these circumstances, whereas affordable for safeguarding government-held property, have been simpler for a big trade operator corresponding to Dunamu to fulfill than for standalone custody companies with fewer assets.
One custody business official stated competing in opposition to a significant trade underneath these necessities “wasn’t a straightforward recreation from the beginning.”
Analysis course of attracts criticism
Some market individuals additionally expressed disappointment with the analysis course of itself. Based on native media, an business official stated Dunamu was doubtless assessed favorably due to its expertise working a 24-hour trade infrastructure and dealing with a number of digital property, however added {that a} proposed on-site inspection of competing companies’ safety programs and working infrastructure was not included within the analysis.
The Nationwide Police Company rejected strategies that the end result favored a big firm from the outset, with native media reporting that the company stated the operator had been chosen by a good aggressive course of.
The choice follows earlier incidents involving the dealing with of seized cryptocurrencies by legislation enforcement businesses. Native reviews famous that the necessity for an exterior custody supplier gained consideration after Bitcoin seized by the Gwangju District Prosecutors’ Workplace was misplaced, whereas police additionally later confirmed that seized Bitcoin had gone lacking in a separate 2022 incident.
The newest growth comes as Dunamu continues to navigate regulatory scrutiny on different fronts. Earlier this month, the corporate disclosed that the completion of its deliberate all-stock share swap with Naver Monetary had been postponed for a second time till Dec. 31 as a number of regulatory approvals stay pending.
