South Korea's Gwangju incident: Hundreds of millions of bitcoins in government departments disappeared due to phishing attacks

South Korea’s Gwangju District Prosecutor’s Office is in big trouble – a huge amount of Bitcoin assets confiscated as evidence in a criminal case mysteriously disappeared during management. The findings of the internal audit are sobering: these digital assets were likely stolen during official custody in a well-designed phishing attack. This incident profoundly reflects the deep-seated security risks behind the Gwangju incident in South Korea - even the authorities find it difficult to completely avoid the risks of crypto asset management.

Authorities are likewise targeted by phishing attacks

For a long time, security incidents in the cryptocurrency space have mainly plagued ordinary investors and trading platforms. However, what happened to the Gwangju prosecutor’s office in South Korea shows that government departments are also facing severe tests in digital asset management. According to local media reports, an official commented: "We are currently investigating the loss of the seized items and their whereabouts. "

The principle of phishing attacks is not complex, but the difficulty of preventing them is often underestimated. Scammers craft fake interfaces or communications by impersonating trusted wallets, trading platforms, or official institutions, enticing targeted users to reveal their private keys, passwords, or recovery phrases. Due to the decentralized nature of cryptocurrencies and the irreversible nature of transactions, once the keys are stolen, asset transfers are irreparable. Even agencies with official management resources and audit teams can fall into the trap of sophisticated social worker attacks.

Crypto scams set a record for $10 billion in losses in 2025

According to the latest statistics from blockchain analytics firm Chainalysis, cryptocurrency scams and fraud incidents will result in a total loss of approximately $17 billion in victims in 2025, with impersonation scams surging by a staggering 1,400% year-on-year. These figures not only reflect the scale of hacking activities, but also show that fraud methods are being industrialized.

AI-powered phishing attacks become a new threat

More worryingly, AI-driven attacks are 4.5 times more profitable than traditional methods, driving rapid iteration of the attack industry. Modern fraud syndicates are equipped with phishing-as-a-service tools, deepfake technology, and professional-grade money laundering solutions, forming a complete criminal ecosystem. The incident in Gwangju, South Korea, is the epitome of this trend escalation.

In the current market, the price of Bitcoin has stood at a high of $83.53K (data updated on January 29, 2026), and the continuous rise in asset value has stimulated the desire of criminals to commit crimes. Both individual investors and authorities need to recognize that phishing has become a top security hazard in the crypto space. Establishing multi-level verification mechanisms, using hardware wallets for offline storage, and regular security audits have become essential measures to prevent risks.