Bitcoin Confiscated in South Korea: New Evidence of Global Crypto Security Threat

The cryptocurrency industry faces increasing security threats at all levels, including government and institutional structures. Authorities in the Gwangju region are investigating the loss of a significant amount of bitcoin (BTC, currently $87.41K) seized in a criminal case. This incident highlights the risks faced even by government agencies in managing decentralized digital assets.

According to Chainalysis data, crypto scams and frauds are estimated to have stolen $17 billion from victims in 2025. This is a very serious figure, and the annual 1,400% increase in identity impersonation scams indicates a concerning trend. AI-powered attacks have become 4.5 times more profitable compared to traditional methods. Therefore, both developed economies and emerging markets need to combat these threats on an equal footing.

Bitcoin Losses in Gwangju: Threats Believed to Come from Within

According to local media reports, prosecutors in the Gwangju region are investigating where the seized bitcoins went and how it happened. The occurrence of these losses during official storage and management processes points to systemic security vulnerabilities. An official stated: “We are currently examining the details of the loss of the seized items and where the issues arose.”

Internal audit results suggest that the coins were most likely stolen via phishing attacks. These findings imply that the party involved was deceived through fake interfaces resembling trusted wallets or platforms. Such attacks pose a systemic threat due to the decentralized and irreversible nature of crypto.

Industry-Wide Threat of Phishing Attacks

Crypto phishing attacks occur when scammers imitate well-known platforms to trick users into revealing their private keys, passwords, or seed phrases. Phishing-as-a-service tools, deepfake technology, and professional-level money laundering schemes support these attacks on an industrial scale.

Security experts note that institutions managing crypto assets in the Asia-Pacific region (including major financial centers like Hong Kong, Singapore, and South Korea) face increasing risks. Unlike traditional financial systems, there are no centralized controls for storing and transferring decentralized assets. This presents a new challenge for governments and institutions.

Global Crypto Security: A New Challenge for Governments

This incident in Gwangju, South Korea, serves as a wake-up call for authorities worldwide. Secure management of crypto assets is now a critical priority not only for individual investors or trading platforms but also for public institutions. Chainalysis’s analyses demonstrate that these threats are systematic and large-scale.

Since phishing attacks can succeed by imitating trusted platforms and employing social engineering, it is concluded that developing technical infrastructure alone is not enough; education and awareness efforts are equally important. The fact that similar issues are occurring in major financial centers (including Hong Kong) underscores the urgency of international cooperation and standardized security protocols.