Prosecutors in South Korea discovered that approximately 70 billion won worth of Bitcoin had disappeared from a vault containing seized assets following a phishing attack targeting agency employees.
South Korean authorities have launched an investigation after discovering that $47.7 million worth of Bitcoin seized in a criminal case had been stolen.
According to local media reports published on Thursday, officials from the Gwangju District Prosecutor's Office discovered the disappearance of approximately 70 billion won worth of Bitcoin during a routine inspection of seized financial assets. This incident raises questions about the security capabilities and procedures for safeguarding digital assets by law enforcement agencies, as cryptocurrencies become increasingly attractive targets for cybercriminals.
According to The Chosun Daily , the Bitcoin was stolen after passwords were leaked through a phishing attack. A prosecutor's office official confirmed that the cause was a staff member accessing a fraudulent website, allowing the attacker to gain access to the storage wallet.
Phishing is one of the most common forms of attack in the cryptocurrency space, where cybercriminals create fake websites or emails mimicking legitimate platforms to trick victims into providing private keys or login information.
Lessons on managing confiscated digital assets.
The prosecutor's office declined to disclose the specific amount of Bitcoin lost or the timing of its seizure, citing an ongoing investigation. A prosecutor told Yonhap News that the agency is conducting an investigation to trace the circumstances and location of the seized evidence and could not confirm specific details.
This theft occurred just days after South Korean customs authorities dismantled a large-scale cryptocurrency money laundering ring on Monday, highlighting that digital asset-related crime remains a serious challenge in the country.
Although phishing attacks remain a significant threat, data from Scam Sniffer released earlier this month shows that phishing-related losses in the cryptocurrency sector have decreased by over 80 percent in 2025. Total losses fell to $83.85 million, while the number of victims also decreased by nearly 70 percent to 106,000. However, the incident in South Korea once again highlights the need for even law enforcement agencies to enhance security measures when managing digital assets.
As the adoption of cryptocurrencies increases, law enforcement agencies worldwide are seizing and holding ever-growing volumes of Token , but the custody methods used are often not publicly disclosed.
South Korean authorities are not the only agency holding significant amounts of cryptocurrency. Last June, the US exchange Coinbase announced it had assisted the US Secret Service in seizing $225 million worth of cryptocurrency allegedly stolen by fraudsters, marking the agency's largest seizure to date.
Meanwhile, last October, British authorities were reportedly considering retaining $6.4 billion worth of Bitcoin seized since 2018 instead of compensating 128,000 investors who were defrauded in China, sparking controversy over ownership and distribution of the seized assets.
