South Korean prosecutors seize Bitcoin confiscated in alleged phishing attack

Source: Yellow Original Title: South Korean prosecutors lose seized Bitcoin in alleged phishing attack

Original Link: https://yellow.com/es/news/fiscales-surcoreanos-pierden-bitcoin-incautado-en-presunto-ataque-de-phishing South Korean tax authorities are investigating the loss of Bitcoin seized in a criminal case after an alleged phishing attack compromised government custody around mid-2025.

The Gwangju District Prosecutor’s Office recently discovered that a significant amount of confiscated cryptocurrency had gone missing during storage and management, according to local reports.

An internal investigation points to phishing as the likely cause of the loss.

What happened

Prosecutors refused to disclose the specific value or amount of missing bitcoin, claiming that the investigation is ongoing to determine how the assets disappeared from government custody.

“We are conducting an investigation to trace the circumstances and whereabouts of the seized items that have been lost,” said a prosecutor.

The prosecution could not confirm further details about the incident.

The Gwangju office has previously handled large-scale cryptocurrency seizure cases involving substantial amounts of bitcoin. In an illegal gambling investigation in 2024, prosecutors attempted to confiscate 24.613 BTC — worth approximately $2.2 billion at current prices — from an operator managing betting sites based on Bitcoin price fluctuations between 2018 and 2021.

Why it matters

The loss raises questions about the custody protocols for seized crypto assets, at a time when South Korean authorities are strengthening law enforcement against cryptocurrency-related crimes.

South Korea’s Supreme Court established in 2018 the legal authority to seize bitcoin held on exchanges, ruling that cryptocurrencies are intangible assets with patrimonial value subject to confiscation.

A Supreme Court ruling in December 2025 further clarified that bitcoin held on centralized exchanges qualifies as property subject to seizure during criminal investigations.

The ruling stemmed from a 2020 case in which police confiscated 55.6 BTC during a money laundering investigation.

The incident highlights vulnerabilities in how law enforcement agencies secure seized digital assets, which require specialized custody solutions unlike traditional confiscated property.

South Korean authorities have recently intensified enforcement of cryptocurrency regulations, and prosecutors have established specialized units for crypto crimes handling cases involving billions of won in seized assets.