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#SouthKoreaSeizedBTCLoss - Major Bitcoin Loss in Government Custody Shocks Crypto Community. South Korean prosecutors have confirmed that tens of billions of won worth of seized Bitcoin $BTC ( about $48 M ) went missing while in state custody, unexpectedly uncovered during a routine audit. Authorities believe the loss resulted from a phishing attack on a device storing the private keys, exposing serious gaps in how digital assets are secured even by official institutions. South Korea’s Supreme Court recently ruled that Bitcoin held on exchanges can be legally seized under criminal law, setting new legal precedents for crypto asset confiscation - but this incident highlights the risks of key management and custody protocols. The ongoing investigation aims to recover the assets and determine whether internal oversight failures or external fraud were involved. This high profile loss underscores the importance of strong custody practices, secure key storage, and institutional readiness as crypto becomes more integrated with mainstream legal and financial systems. #SouthKoreaSeizedBTCLoss