South Korea has been shocked by the disappearance of Bitcoin worth about $47 million (70 billion won) that authorities had previously seized in a criminal case, according to local media reports.
The loss was only discovered after a routine inspection of seized assets was carried out by the Gwangju District Prosecutors' Office.
Initial investigations found that the incident was caused by a 'phishing' attack, when an employee is believed to have accessed a fake website, causing a Bitcoin wallet password to be leaked.
Phishing is one of the most common fraud methods in the crypto world, where attackers pose as legitimate parties to trick victims into handing over sensitive information such as private keys or wallet access.
A prosecutor's office official confirmed that an investigation is underway to track down the stolen Bitcoin, but declined to disclose further details due to security reasons and the ongoing investigation.
However, the incident comes as recent reports show losses from crypto phishing will drop by more than 80% by 2025, in line with increased security awareness among users.
The case raises serious questions about the security of crypto assets held by government agencies, especially as more and more authorities around the world hold billions of dollars worth of crypto seized from criminal activities.
While blockchain technology is known for its security, this incident once again proves that the human factor remains the biggest weakness in the crypto ecosystem.
