Large Amount of Bitcoin Seized in South Korea Goes Missing – Here’s What We Know

According to a report by local news agency Yonhap News, an internal investigation conducted by the Gwangju District Procuratorate indicated that a “significant” amount of Bitcoin ($BTC) seized in a criminal case may have gone missing while under state custody.

Prosecutors believe the disappearance occurred during the storage and management process in mid-last year, and a phishing attempt is being considered as a possible cause.

Due to the ongoing investigation, details regarding the amount missing or the monetary value of the assets were not shared. Officials also declined to provide any further information regarding the case.

Gwangju District Procuratorate has previously been involved in high-value crypto asset seizures. In March 2024, the prosecutor’s office attempted to recover approximately 170 billion won (approximately $127 million) worth of Bitcoin linked to illegal gambling activity.

In South Korea, the institutional framework for Bitcoin confiscation dates back to 2018. That year, the South Korean Supreme Court ruled that cryptocurrencies are intangible assets with economic value and can be seized under the Code of Criminal Procedure. This decision paved the way for the confiscation of 191 $BTC from a convicted operator of an illegal website; the value of these assets at the time was approximately $2.3 million.

The Supreme Court expanded on this approach with a new ruling on December 11 last year. The decision confirmed that Bitcoin held on centralized exchanges such as Upbit and Bithumb is also subject to seizure. In January 2020, the seizure of more than 55 $BTC from an exchange account as part of a money laundering investigation was upheld by the Supreme Court following appeals.

*This is not investment advice.