South Korea Loses $48M in Seized Bitcoin After Phishing Attack
According to local media reports, South Korean prosecutors are investigating the disappearance of confiscated Bitcoins worth about $48 million following a suspected phishing attack. 
The Gwangju District Prosecutor’s Office found that about 70 billion won (approximately $48 million) of seized Bitcoins were missing during a routine check of the seized assets. This incident highlights the challenges faced by law enforcement agencies worldwide in securely holding large amounts of seized cryptocurrencies.
Investigation and Circumstances
The missing digital assets were discovered during a routine inspection of seized financial holdings related to a previous criminal case, local outlets reported. The value of the missing Bitcoin was about 70 billion won, or $48 million. Officials discovered the loss during standard internal checks conducted to ensure the seized assets remained safe.
According to the reports, investigators believe the exposure occurred when an employee accessed a fraudulent website that mimicked a legitimate service and collected sensitive login credentials. A prosecutor’s office official reportedly confirmed phishing as the suspected cause and said the incident arose from accessing a scam website.
Global Custody Risks and Precedents
The case highlights global custody risks as authorities hold large crypto treasures, reminiscent of seizures in the US, such as the Secret Service’s recovery of $225 million USDT with the help of Coinbase. In the United Kingdom, officials have debated whether to withhold billions of dollars in seized Bitcoin rather than return funds to victims.
Authorities have not announced a timetable for completing the investigation. The incident underscores the importance of robust security measures for holding and managing seized cryptocurrencies. As law enforcement agencies continue to grapple with the challenges of crypto custody, this case serves as a reminder of the need for vigilance and expertise in protecting these assets.
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