South Korean prosecutors have launched an internal audit into the loss of confiscated cryptocurrency worth about 40 billion won ($28 million), warning that criminal liability could follow if wrongdoing is uncovered.
The Gwangju District Prosecutors' Office said Wednesday that five inspectors are under audit over a case in which 320 bitcoins were stolen in August 2025 during an internal handover process.
According to prosecutors, the inspectors attempted to verify the amount of bitcoin stored in a USB-based hardware wallet, but mistakenly accessed a phishing website designed to resemble a legitimate cryptocurrency checking platform. As a result, the bitcoins were siphoned off.
Even after the incident, the inspectors reportedly confirmed only the physical presence of the USB device without verifying whether the cryptocurrency remained intact.
The prosecution is examining the inspectors’ mobile phones and other materials, but has so far found no evidence of collusion with internal personnel, officials said.
“We will thoroughly investigate the circumstances surrounding the incident and make every effort to recover the bitcoins and apprehend those responsible,” the prosecution said in a statement. “We will also review the management system for confiscated assets to address any institutional shortcomings.”
forestjs@heraldcorp.com
