How Korea Faced the Problem of Confiscated Bitcoins Disappearing

A critical vulnerability of digital assets has come into focus: even government agencies are not immune to phishing attacks. Prosecutorial authorities in Korea conducted an investigation into one of the most unusual incidents in cryptocurrency security history, revealing extensive losses of seized Bitcoin reserves.

Investigation in Korea: How Seized Crypto Assets Disappeared

Prosecutors in Gwangju, Korea, initiated an inquiry into the disappearance of a large amount of Bitcoin [BTC], which had been confiscated during criminal proceedings. An internal audit confirmed serious suspicions: digital assets were stolen through a phishing attack that occurred during the official process of their storage and management.

A spokesperson from the authorities, speaking with local media, explained: “We are currently clarifying the circumstances related to the disappearance and the search for the confiscated items. We cannot confirm specific details at this time.” This incident in Korea highlights a pressing issue: phishing remains one of the most dangerous threats in the digital assets industry, regardless of the victim’s status.

Global Statistics: The Scale of Crypto Phishing Continues to Grow

Research by analytics firm Chainalysis revealed the extent of the problem. Last year, cryptocurrency scams and financial fraud schemes cost victims approximately $17 billion, representing a staggering 1400 percent annual growth for a specific type of fraud — identity theft scams.

The most alarming trend: attacks utilizing artificial intelligence technologies proved to be nearly five times more profitable than traditional methods. This development has facilitated the growth of industrialized criminal operations employing specialized phishing tools, synthetic video technology (deepfakes), and professionally organized money laundering systems. A crypto-phishing attack follows a well-known scheme: scammers deceive users into revealing private keys, passwords, or mnemonic phrases, impersonating reputable wallets or trading platforms.

Even Governments in Korea and Worldwide Are Targets for Criminals

For a long time, it was believed that cyber threats only affected private investors and commercial trading platforms. However, the situation in Korea demonstrates that government structures are also at risk. The decentralized architecture and irreversibility of transactions in the crypto sphere make such assets particularly attractive targets for skilled hackers.

Simultaneously, at the corporate level, there is an exponential increase in investments to defend against these threats. Public financial reports from major tech giants (Microsoft and Meta) confirmed that spending on artificial intelligence development continues to accelerate. Microsoft emphasized that AI has become one of the company’s main strategic directions with long-term growth prospects. Meta, for its part, announced plans to sharply increase capital investments in 2026 to fund its Meta Super Intelligence laboratories and core operational business.

The incident in Korea serves as a vivid reminder of the need to revisit security approaches for digital assets at all levels — for both private users and government agencies.