South Korea prosecutors have reportedly lost control of Bitcoin worth approximately $48 million, raising serious concerns around digital asset custody and management within government agencies.
The incident is linked to Bitcoin previously seized during a criminal investigation, with issues reportedly arising from mishandling, access problems, or procedural failures. Authorities are now facing scrutiny over how confiscated crypto assets are stored and secured.
Analysts say the case highlights a growing challenge for governments worldwide, as traditional legal systems adapt to managing decentralized digital assets. The incident may accelerate reforms around crypto custody standards, transparency, and accountability in law enforcement operations.
