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South Korean authorities have confirmed the loss of a large amount of seized Bitcoin, which was being held under government custody as part of criminal investigations. The issue came to light during an internal audit, not through market activity. Early information suggests the loss may be connected to a security lapse, possibly a phishing incident, which could have exposed wallet access. Once private keys are compromised, Bitcoin can be transferred permanently, and officials have stated that an investigation is still ongoing with no final conclusion yet. Importantly, Bitcoin’s network did not fail, and this event does not represent a market supply or demand shock. Instead, it highlights the risks of human error and weak custody practices, even at an institutional level. The key lesson remains that trust is built through responsibility and proper asset management, not merely authority #SouthKoreaSeizedBTCLoss
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