Particle.news
Download on the App Store

South Korean Prosecutors Confirm Seized Bitcoin Missing After Phishing Breach

The Gwangju District Prosecutors’ Office opened an investigation after a routine check exposed transfers enabled by credentials captured on a fake website.

Overview

  • Officials say seized Bitcoin disappeared from custody during standard inspections of confiscated assets tied to a criminal case.
  • Local reports and internal accounts estimate the loss at roughly 70 billion won, or about $48–49 million, though the office has not confirmed the exact amount.
  • Preliminary findings point to a phishing incident in which an employee visited a fraudulent site that harvested passwords kept on USB drives.
  • Prosecutors are tracing the funds and circumstances but have declined to disclose timing or operational details, and recovery is considered difficult once keys are compromised.
  • A recent Supreme Court ruling affirmed that exchange‑held crypto is seizable property, highlighting rising enforcement activity and custody risks for state‑held digital assets.