Hacker returns $21M in stolen bitcoin to South Korean authorities
A hacker in South Korea voluntarily returned more than $21 million in bitcoin that had been stolen from investigators a year earlier. The incident triggered a nationwide review of how seized digital assets are stored.
South Korean prosecutors have regained access to roughly $21.4 million in bitcoin stolen from their own custody in 2025. Local media reported in December that BTC seized during an investigation into an illegal gambling platform had been lost following a breach.
Investigators determined that staff at the Gwangju District Prosecutors’ Office mistakenly entered seed phrases into a phishing website, allowing the attacker to withdraw 320.8 BTC. But this week, the hacker unexpectedly returned all the stolen funds to the agency’s wallet. Prosecutors said they had blocked all transactions involving the assets on centralized exchanges, making it impossible for the attacker to sell or cash out the coins.
After recovery, the bitcoin was transferred to a local exchange for secure storage. The hacker’s identity remains unknown, and authorities will continue investigating the breach and any potential internal involvement.
The incident has triggered a comprehensive review of how seized digital assets are managed nationwide. Earlier, police in Seoul’s Gangnam district lost access to 22 BTC stored in a cold wallet since 2021. Another region has launched an internal probe into a possible data leak and staff misconduct.
The episode highlights the vulnerability of government agencies when handling cryptocurrencies and increases pressure on law enforcement to implement stronger security and oversight standards.
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