Milly Strem

#SouthKoreaSeizedBTCLoss - Prosecutors Lose ~$48M in Seized Bitcoin Amid Phishing Scam South Korea is investigating a major loss of seized Bitcoin after roughly 70 billion won (about $47.7 million) worth of BTC disappeared from state custody — highlighting a serious vulnerability in how digital assets are managed by law enforcement. Authorities say the loss occurred when officials conducting a routine internal inspection discovered the confiscated Bitcoin was no longer accessible. 📉 What Happened The missing Bitcoin was held by the Gwangju District Prosecutors’ Office, stored as evidence from a past criminal investigation. During a standard asset review, staff reportedly connected a storage device containing wallet credentials (such as private keys) and inadvertently accessed a fraudulent or “phishing” website. That interaction is believed to have exposed sensitive access information, allowing malicious actors to drain the funds from the custodial wallet. Officials from the prosecutors’ office have launched an internal investigation to determine exactly how the breach occurred and whether any of the missing Bitcoin can be recovered, though no precise details have been disclosed publicly. Authorities cited the ongoing nature of the probe as the reason for withholding specifics. ⚠️ Broader Implications This loss raises urgent questions about security protocols for seized digital assets. Unlike physical evidence, cryptocurrencies require specialized custody practices — including air-gapped wallets, strict access controls, and rigorous phishing safeguards — to prevent unauthorized access. The incident has sparked criticism that law enforcement agencies lack adequate infrastructure and training to secure large amounts of confiscated crypto. In short: South Korean prosecutors are investigating the disappearance of $48 million) in seized Bitcoin after a suspected phishing compromise, underscoring the vulnerabilities in government custody of digital assets.