South Korea loses $48m in seized Bitcoin after phishing attack

South Korean prosecutors are investigating the disappearance of approximately $48 million in seized Bitcoin following a suspected phishing attack, according to local media reports.

The Gwangju District Prosecutors’ Office discovered the missing digital assets during a routine inspection of confiscated financial holdings tied to a past criminal case, local outlets reported. The value of the missing Bitcoin was approximately 70 billion won, or $48 million, according to the South Korean reports.

Officials detected the loss during standard internal checks conducted to ensure seized assets remain secure, the reports stated. The discovery prompted an internal review, though the office declined to provide further details, citing the active investigation.

South Korea loses crypto

“We are conducting an investigation to track the circumstances and whereabouts of the seized items,” a prosecution official told Yonhap News. The official added that specific details could not be confirmed at this time. The exact date of the original seizure was not publicly disclosed.

Local media reported that the Bitcoin was stolen after a password was exposed outside the agency. Investigators believe the exposure occurred when an employee accessed a fraudulent website that imitated a legitimate service and captured sensitive login data, according to the reports.

A prosecutors’ office official reportedly confirmed phishing as the suspected cause, stating the incident followed access to a scam website. Authorities are reviewing internal security procedures and employee access controls, according to the reports.

The investigation focuses on identifying how the credentials were compromised and whether internal controls failed, officials stated. Authorities are also examining possible recovery options.

The case highlights challenges faced by law enforcement agencies worldwide that hold large amounts of seized cryptocurrency, often stored for extended periods during legal proceedings. Custody methods are rarely disclosed to the public.

In the United States, the Secret Service seized $225 million in cryptocurrency with support from Coinbase, according to previous reports. In the United Kingdom, officials have debated retaining billions in seized Bitcoin instead of returning funds to victims.

Authorities have not announced a timeline for the investigation’s conclusion.