South Korean Prosecutors Lose Seized Bitcoin, Decline to Disclose Details

The Gwangju District Prosecutors' Office in South Korea has lost a substantial amount of Bitcoin seized during a criminal investigation, with internal estimates suggesting the loss is around 70 billion won ($48 million). The disappearance, discovered recently, is suspected to have occurred around mid-2025 after officials accidentally accessed a scam website during a routine inspection of seized assets, indicating a potential phishing attack.

The incident has raised serious questions regarding the digital asset custody protocols used by law enforcement. Concerns include whether proper seizure procedures were followed, if the custody wallet was created in an air-gapped environment, how private keys were stored (as opposed to network-connected devices), and the effectiveness of access control, given that officials reportedly accessed a malicious site.

This case underscores the growing challenge for authorities globally in securing digital evidence. Traditional evidence storage methods are insufficient for cryptocurrency, requiring active security measures. The prosecutors have declined to confirm the exact amount lost or disclose the security guidelines they followed, making this a cautionary example of institutional unpreparedness when handling unconventional assets.

(Source：BeInCrypto)