Hacker Returns $21 Million in Stolen Bitcoin to South Korean Prosecutors

South Korean prosecutors have regained control of approximately $21.4 million worth of bitcoin that was stolen from government custody last year. The recovered amount totals 320.8 BTC, which was transferred back to an official wallet earlier this week after authorities restricted the attacker’s ability to move funds through centralized exchanges.

The bitcoin had originally been seized during a raid on an illegal gambling platform. However, an internal review later revealed that investigators inadvertently exposed recovery seed phrases after accessing a phishing website in August, allowing the assets to be drained from custody.

Nationwide Review of Seized Digital Asset Security

Following the return of the funds, prosecutors moved the bitcoin to a local exchange for secure storage while continuing efforts to identify the hacker. Authorities confirmed that the individual’s identity remains unknown.

The incident has triggered broader scrutiny of how seized digital assets are managed across law enforcement agencies. A recent inquiry also found that 22 BTC stored in a cold wallet by a Seoul police station have been unaccounted for since 2021. Meanwhile, the Gyeonggi Bukbu Provincial Police Agency has launched an internal investigation to determine whether procedural failures or internal involvement contributed to the breach.

Disclaimer

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