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- South Korea probes missing bitcoin after phishing attack suspicion.
- Gwangju prosecutors investigate cryptocurrency loss in criminal case.
- Legal concerns rise over security measures for seized bitcoin.
According to reports, officials from South Korea’s Gwangju District Prosecutors’ Office are investigating the disappearance of a significant amount of bitcoin seized during a criminal investigation. A self-disclosure apparently cast doubt on whether the cryptocurrency had been misplaced during storage, and a phishing attack was suspected as a factor that could have led to its loss. The lost bitcoin is estimated to have been lost somewhere between 2025.
Prosecutors have not revealed the specific quantity or value of the stolen bitcoin, although they have said the investigation is still underway. The defeat has also cast doubt, especially given that the Gwangju District Prosecutors’ Office has been involved in high-profile crypto seizures. An example of this was in 2024, when they tried to retrieve bitcoin worth about 170 billion won (around $127 million) from an illegal gambling business.
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Legal Framework for Seizing Digital Assets
The legal position on cryptocurrency confiscation in South Korea dates back to 2018, when the Supreme Court ruled that cryptocurrencies should be treated as intangible assets with a property value. This decision allowed law enforcement agencies to seize digital assets, such as Bitcoin, in criminal investigations. In 2018, the state confiscated 191 BTC belonging to an apprehended publisher of a child porn site. This court ruling held that cryptocurrencies, such as bitcoin, could be seized under the Criminal Procedure Act so long as they were pertinent to criminal proceedings.
This decision led to further cryptocurrency confiscations. The Supreme Court further extended this in December 2025, affirming that bitcoin held on centralized exchanges, including Upbit and Bithumb, could also be seized by law enforcement. The case was based on a 2020 incident in which more than 55 BTC were taken from an exchange account as part of a money laundering investigation.
Concerns Over Security Measures in Handling Seized Digital Assets
The unbearable bitcoin situation in Gwangju now introduces a new layer of complexity into how authorities in South Korea handle digital assets. Although this investigation is still in its infancy, the possibility of losing the assets currently being confiscated has cast doubt on the efficiency of the security protocols in place to protect digital currencies in state custody.
With the authorities still investigating the incident, the rest of the crypto community will be closely monitoring any developments that may influence future crypto-related cases in the country.
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