Authorities in South Korea are currently investigating the disappearance of Bitcoin worth approximately 70 billion won (around $47.7 million) that was confiscated during a criminal prosecution. This alarming discovery surfaced during a routine check of seized financial assets.
Reports indicate that the theft occurred when an employee of the agency inadvertently accessed a fraudulent website, leading to a phishing attack that compromised password security.
Phishing attacks are a prevalent threat in the cryptocurrency realm, as they can trick users into revealing private keys through deceptive emails or web pages.
Phishing Attack
Source: Cointelegraph
From a broader perspective, earlier this month, Scam Sniffer highlighted that losses from phishing schemes in the crypto sector dropped by over 80% in 2025, amounting to $83.85 million.
As authorities globally seize more cryptocurrencies, including in South Korea, the methods of holding these assets often remain undisclosed.
Ongoing Investigation into Bitcoin Theft
The prosecutors have withheld precise details about the timeframe of the Bitcoin seizure or the amount reportedly lost, emphasizing the sensitive nature of the ongoing inquiry.
“We are conducting an investigation to track the circumstances and whereabouts of the seized items, though specific details cannot be confirmed,” stated a prosecution official according to Yonhap News.
This incident follows a successful crackdown by South Korean customs on a widespread crypto laundering operation.
Related: South Korea weighs ending one-bank rule for crypto exchanges
Agencies Holding Billions in Cryptocurrency
South Korea is not alone in holding significant volumes of cryptocurrency. Last June, US exchange Coinbase revealed its role in assisting the US Secret Service to confiscate $225 million in crypto reportedly linked to fraud. Meanwhile, UK officials are considering retaining $6.4 billion in Bitcoin obtained from scammers instead of compensating the victims.
