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South Korean Prosecutors Probing $48 Million Loss of Seized Bitcoin After Phishing Breach

Officials have opened an internal inquiry into credentials exposed from a USB drive during a routine check.

Overview

  • The Gwangju District Prosecutors’ Office discovered roughly 70 billion won in seized Bitcoin missing during a routine inspection in mid‑2025, according to local reports.
  • Preliminary findings say an employee visited a fraudulent website that captured wallet passwords stored on a USB device, enabling unauthorized transfers.
  • Prosecutors confirmed an ongoing investigation and have withheld the exact amount and coin quantity pending further review.
  • Funds were moved to external wallets in transactions that cannot be reversed, leaving recovery dependent on tracing efforts and legal action.
  • A recent Supreme Court ruling confirmed that Bitcoin on exchanges can be seized under the Criminal Procedure Act, increasing government-held crypto that demands stronger custody controls.