South Korea probes loss of seized bitcoin in phishing attack

Crypto mishaps have long plagued individual investors and exchanges, but now even governments aren't immune.

In South Korea's Gwangju District, prosecutors are investigating the loss of a substantial bitcoin BTC$89,544.23 stash seized in a criminal case, local media reports. An internal audit flagged the issue: the coins were likely stolen via phishing during the official storage and management process.

"We are currently investigating the circumstances surrounding the loss and whereabouts of the seized items," an official told Yonhap News, adding, "We cannot confirm any specific details."

The loss highlights ongoing challenges in securely managing digital assets, even for authorities, as phishing remains a top threat in the industry.

A crypto phishing attack involves scammers tricking users into giving up their private keys, passwords, or seed phrases by impersonating trusted wallets or platforms. These attacks are common due to crypto's decentralized and irreversible nature.

Chainalysis estimates that crypto scams and fraud drained $17 billion from victims in 2025, driven by a staggering 1,400% year-over-year surge in impersonation scams.

AI-powered attacks proved 4.5 times more lucrative than old-school tactics, fueling industrialized operations with phishing-as-a-service tools, deepfake technology, and pro-level money-laundering setups.