South Korean police admit losing seized bitcoin in phishing scam
Even law enforcement agencies that are expected to know how to protect themselves from crypto scammers can fall victim to such crimes, as a recent incident in South Korea has shown.
Even law enforcement agencies that are expected to know how to protect themselves from crypto scammers can fall victim to such crimes, as a recent incident in South Korea has shown.
According to multiple local media reports, South Korean police confirmed that they've launched an investigation in an attempt to recover lost bitcoin (BTC). While official details remain scarce, police reportedly acknowledged that they suffered a phishing attack after a member of their team was tricked into visiting a scam website during a routine check of seized BTC. This reportedly enabled criminals to access sensitive data, which was then allegedly used to steal BTC from a hardware wallet.
Some reports speculate that the scammers may have stolen bitcoin worth between $48 million and $115 million.
The bitcoin was seized from an illegal gambling operator, who was later sentenced to two and a half years in prison.
Meanwhile, as the investigation continues, South Korea has also repatriated 73 suspected scammers from Cambodia for questioning over allegations that they stole approximately $33 million from more than 800 South Koreans, Reuters reported today.
As previously reported, Asia is increasingly becoming a hotspot for crypto scammers targeting victims around the globe. However, each region has its own crypto criminals. For example, the US Department of Justice’s Fraud Section highlighted significant crypto-related cases in its 2025 Year in Review. In one case, a court in November 2025 sentenced a man to 60 months in prison for a $9.4 million investment fraud scheme that victimized approximately 2,800 people. In another case, law enforcement seized more than $7.2 million worth of assets, including crypto assets.
Meanwhile, according to cybersecurity firm Push Security, phishing scammers continued to innovate in 2025, testing new techniques as more phishing attacks occurred outside of email, including via LinkedIn direct messages and Google search results. Criminals are also increasingly using phishing-as-a-service (PhaaS) kits, which lower the barrier to entry and make attacks more efficient.
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