Gwangju prosecutors probe possible ₩70bn loss after seized Bitcoin wallets hit by phishing
South Korea’s Gwangju District Prosecutors’ Office has opened an internal investigation after a routine audit found that seized bitcoin may have been drained following a suspected phishing incident. Prosecutors say staff reviewing passwords stored on removable drives reportedly accessed a fraudulent website, potentially exposing wallet credentials. Officials have not publicly confirmed the exact amount lost; internal estimates circulated at one point put the figure as high as 70 billion won (~$47.7m), though the office is still tracing funds and verifying technical details. The case underscores persistent phishing risks for custody of seized crypto and institutional handling of private keys, and follows similar scams that harvested seed phrases via spoofed sites and fake meeting links. Traders should monitor any on-chain traces or wallet movements and expect further disclosures as prosecutors attempt asset tracing and recovery.
Bearish
The news is likely bearish for BTC price sentiment in the short term because reports of a large quantity of seized bitcoin being lost to a phishing incident increase perceived operational and custody risk around institutional holdings. Traders often react to thefts or compromised custody by selling or by increasing risk premia, which can add downward pressure on price. The uncertainty over the exact amount and ongoing tracing efforts could cause volatility until authorities release clearer findings or funds are recovered. In the medium to long term the fundamental impact on Bitcoin’s supply is limited unless a confirmed, unrecoverable transfer of a very large holding is proven; market confidence may recover if prosecutors trace and freeze moved funds or if the event prompts stricter custody practices. Therefore the immediate effect is negative (bearish) due to increased risk and uncertainty, while long-term effects depend on recovery and regulatory or custody responses.