A password leak at a prosecutors’ office allowed hackers to drain billions in confiscated BTC, underscoring how phishing still haunts crypto—even inside government vaults.

South Korean prosecutors are investigating the loss of a large amount of Bitcoin that went missing while in state custody, with a phishing attack believed to be the cause. The missing funds, linked to an illegal gambling case, are estimated to be worth tens of billions of won, around $48–49 million.

South Korean authorities has uncovered one of the largest underground money pipelines in years, exposing how crypto are often misused by bad actors to launder illicit funds while staying under the radar.

South Korean authorities have broken up an international crypto ring that laundered around 150 billion won ($101.7 million) through domestic and overseas accounts. Three Chinese nationals are facing prosecution for using the funds under the guise of legitimate payments like cosmetic surgery and study fees.

Most foreign cryptocurrency exchange apps will be blocked from South Korea’s Google Play Store from 28 January because they are not registered with local authorities. Korean users can still access these platforms via web browsers or APK downloads, but this creates higher security risks and may shift trading towards domestic exchanges.

South Korea’s Supreme Court ruled that Bitcoin held on exchanges can be seized in criminal cases, confirming it as property with economic value. The decision arose from a 2020 money laundering case where 55.6 Bitcoin were confiscated, giving authorities clear legal power to freeze and take crypto linked to crimes.

South Korea’s financial authorities are considering a system to freeze crypto accounts suspected of price manipulation, stopping suspects from moving or hiding illegal gains.

Bithumb has uncovered a vast pool of forgotten cryptocurrency, with the value of the digital asset reaching more than $200 million in value, which has been sitting untouched across millions of inactive accounts, some abandoned for more than a decade.

South Korean authorities have broken up a Cambodia-based criminal syndicate that defrauded victims of more than $1.93 Billion Korean Won using the narrative of being associates of billionaire Elon Musk and offering interested investors a share of SpaceX.

South Korea plans to limit ownership stakes in its biggest cryptocurrency exchanges, forcing major shareholders to sell portions of their holdings. The rules affect platforms like Upbit, Bithumb, and Coinone, aiming to reduce concentrated control and protect market fairness.