South Korean Prosecutors Lose $47.7 Million in Seized Bitcoin to Phishing Attack

TLDR

• South Korean prosecutors discovered around $47.7 million worth of seized Bitcoin was stolen during routine inspection of financial assets
• The theft occurred after a password was leaked through a phishing attack when an agency worker accessed a scam website
• Gwangju District Prosecutors’ Office is investigating but declined to disclose specific details about when the Bitcoin was seized
• Crypto losses from phishing attacks declined over 80% in 2025 to $83.85 million with victim count dropping nearly 70%
• Chainalysis reports crypto scams and fraud drained $17 billion from victims in 2025, with AI-powered attacks proving 4.5 times more effective

Officials at South Korea’s Gwangju District Prosecutors’ Office discovered approximately 70 billion won ($47.7 million) worth of Bitcoin was missing during a routine inspection of seized financial assets. The theft was reported by local media outlets on Thursday.

The Bitcoin was part of assets seized in a criminal case. Prosecutors were conducting a standard review when they found the cryptocurrency had disappeared from their custody.

According to The Chosun Daily, the theft occurred after a password was leaked externally. A prosecutor’s office official confirmed that a phishing attack was responsible for the loss.

The attack happened when an agency worker accessed a fraudulent website. This type of scam is designed to trick users into revealing sensitive information like private keys or passwords.

Phishing attacks are common in the cryptocurrency industry. Attackers create fake websites or send fraudulent emails that appear legitimate to steal access credentials from victims.

Investigation Underway

The prosecutors’ office has launched an investigation into the incident. Officials declined to share specific details about when the Bitcoin was originally seized or the exact amount lost.

The incident raises questions about how law enforcement agencies store seized cryptocurrency. As crypto adoption grows worldwide, various agencies are confiscating and holding large amounts of digital tokens.

However, the custody methods used by these agencies are often not publicly disclosed. This lack of transparency makes it difficult to assess security protocols.

Phishing Attacks in 2025

Despite this high-profile theft, overall crypto losses from phishing attacks have declined sharply. Scam Sniffer reported that phishing-related losses dropped over 80% in 2025.

Total losses fell to $83.85 million from higher levels in previous years. The number of victims also decreased by nearly 70% to 106,000 people.

However, other types of crypto fraud remain a serious problem. Chainalysis estimates that crypto scams and fraud drained $17 billion from victims in 2025.

Rise of AI-Powered Scams

The Chainalysis report highlighted a concerning trend in cryptocurrency fraud. Impersonation scams surged by 1,400% year-over-year in 2025.

AI-powered attacks proved 4.5 times more effective than traditional methods. Scammers are using advanced tools including phishing-as-a-service platforms and deepfake technology.

These sophisticated operations include professional money-laundering setups. The industrialized nature of these scams makes them harder to detect and prevent.

The theft in South Korea demonstrates that even government agencies face challenges securing digital assets. The Gwangju District Prosecutors’ Office continues its investigation to track down the stolen Bitcoin and determine how the phishing attack succeeded.

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