$47M in Bitcoin Disappears From Custody of South Korean Prosecutors
Authorities are investigating a significant loss of Bitcoin reported to be worth approximately $47.7 million due to potential phishing scams.
The Gwangju District Prosecutors’ Office has revealed startling news that a significant amount of Bitcoin previously confiscated during a criminal investigation has become inaccessible. Reports indicate that the loss may be around 47.7 million dollars, primarily attributed to a phishing attack.
During a routine check on seized assets, prosecutors discovered the absence of these digital assets. It was suggested that the loss occurred when an agency employee may have fallen victim to a phishing scheme by clicking a fraudulent link.
Synopsis of Events
Local reports indicate that during an internal assessment of seized financial assets — usually involving verifying passwords and access details stored on USB drives — it was found that the Bitcoin was compromised. A prosecutor’s representative indicated that the loss could stem from a click on a ‘spoofed site’, suggesting that it was not due to a systemic breach.
Further investigation by The Chosun Daily noted that approximately 70 billion won (equivalent to roughly 47.7 million dollars) in Bitcoin is unaccounted for, raising concerns about the exposure of private wallet passwords following the phishing incident.
Authorities are in the process of determining how this loss occurred while trying to track the missing assets without releasing additional details.
Ongoing Phishing Threats
Phishing remains prevalent, posing a significant threat within the cryptocurrency realm as scams often leverage deceptive websites or communication aiming to extract sensitive data like passwords or private keys from victims. The recent events reflect how phishers continue to exploit weaknesses, targeting both individual users and institutional crypto holders worldwide.
Earlier in the year, users of Ledger, a widely used crypto wallet, faced similar threats due to breaches. A report shows that phishing scams are increasingly sophisticated, particularly those that involve fraudulent corporate partnerships. Gracy Chen, CEO of Bitget, also issued warnings about increasing phishing threats relative to popular video conferencing platforms.
