Authorities recovered 320.8 BTC by blocking transactions on centralized exchanges linked to the hacker’s wallet.
South Korean prosecutors have recovered approximately $21.4 million in bitcoin stolen from their custody last year. The hacker returned 320.8 BTC to the authorities’ wallet after they blocked transactions on centralized exchanges linked to the hacker’s wallet.
The incident dates back to last December, when the Gwangju district prosecutor’s office discovered it had lost bitcoins seized during a raid on a gambling platform. An internal investigation revealed that the bitcoins had been stolen in August, after investigators mistakenly accessed a phishing site and entered recovery seed phrases.
On Tuesday, the hacker returned the 320.8 BTC to the wallet held by authorities, according to local outlet Digital Asset. Prosecutors stated they had blocked transactions on centralized exchanges involving the hacker’s wallet, making it difficult to liquidate the bitcoins. The hacker’s identity remains unknown.
Prosecutors subsequently transferred the returned bitcoins to a local exchange for custody and will continue trying to identify the hacker. The incident has led to a nationwide review of how investigative agencies manage seized digital assets.
Last week, the investigation revealed that Seoul Gangnam police station had also lost track of 22 BTC stored in a cold wallet since 2021. The Gyeonggi Bukbu provincial police agency confirmed it has launched an internal investigation to determine the exact circumstances of the loss and verify whether there was internal involvement.
