South Korean prosecution department launches urgent investigation: government theft of Bitcoin incident unfolds under time pressure

A recent government Bitcoin theft case in South Korea is currently under urgent investigation by the country’s prosecution authorities. Prosecutors in the Guangzhou region are handling a shocking case: a large amount of Bitcoin confiscated through official criminal procedures mysteriously went missing during custody. Internal audits suggest that these digital assets were very likely targeted by spear-phishing attacks during official storage and management. This incident serves as a reminder to the world that even government agencies are not immune to the risks of cryptocurrency theft.

South Korea Official Asset Theft: A Real Case of Phishing Attack

Prosecutors in the Guangzhou area are actively investigating this Bitcoin theft case. According to local media reports, anomalies appeared during the management of the confiscated Bitcoin. A prosecutor’s representative told the media, “We are currently investigating all circumstances related to the disappearance and location of these seized assets, but specific details cannot be confirmed at this time.”

Findings from internal audits indicate that these assets were very likely victims of a crypto phishing attack. Phishing is a common fraud technique where attackers impersonate trusted wallets or trading platforms to trick users into revealing private keys, passwords, or recovery phrases. Due to the decentralized nature of cryptocurrencies and the irreversibility of transactions, such attacks often result in permanent asset loss.

The Global Crypto Scam Crisis Is Expanding

Blockchain analytics firm Chainalysis’s latest statistics show that cryptocurrency scams and frauds caused victims to lose approximately $17 billion during 2025. This figure reflects a startling trend: compared to the previous year, the number of such fraud cases increased by 1,400%.

The methods used in these scams are continuously evolving. Attackers now employ AI-driven techniques, including deepfakes and sophisticated money laundering schemes, making these crimes more covert and profitable. Reports indicate that phishing attacks utilizing AI technology are 4.5 times more profitable than traditional methods. This suggests that cybercrime is moving toward industrialization and professionalization, with scam tools systematically provided as services to criminals.

The Threat Has Spread to Government Agencies

The theft of South Korea’s official assets indicates that security vulnerabilities in the custody and management of crypto assets are no longer limited to private investors and trading platforms. Even government departments face similar risks when managing digital assets. This incident highlights the widespread difficulties in protecting digital assets, whether for individual investors, businesses, or government authorities.

Crypto phishing attacks are so effective because they exploit the inherent characteristics of blockchain technology—once a transaction is confirmed, it cannot be reversed. Attackers can impersonate trusted sources to obtain sensitive user information, then control and transfer assets. This form of attack remains one of the primary threats in today’s crypto ecosystem.

Industry Faces New Security Challenges

This case in South Korea serves as a wake-up call for the entire industry. It clearly demonstrates that regardless of who holds the assets, strict security protocols and multi-layered defenses are essential. Government agencies are generally considered to have strong security capabilities, but even they cannot completely eliminate such risks.

With Bitcoin’s price reaching $88,000, the importance of digital asset security is even more pronounced. In an era where high-value assets face increasingly sophisticated threats, all holders—whether private individuals, institutions, or official entities—must adopt the highest security measures. These include offline storage, multi-signature wallets, regular security audits, and rigorous staff security training.

This incident in South Korea reminds us that the security of crypto assets involves not only technical issues but also management processes, personnel training, and risk awareness. Only through comprehensive security strategies can we effectively defend against the growing complexity of phishing and fraud threats.