South Korean Prosecutors Sell 320 Bitcoin After Hacker Returns Stolen Funds
Key Takeaways
- Prosecutors sold about 320 Bitcoin recovered after a phishing-induced custody breach.
- Sale raised 31.59 billion won (about $21.5 million), transferred to the national treasury.
- Sources differ on the exact Bitcoin sold—reports say 320 and 320.8 BTC.
Origin and seizure
The Bitcoin at the centre of the case was originally seized by prosecutors during an investigation into an international illegal gambling operation that operated from 2018 to 2021; authorities said the platform had converted illicit profits into Bitcoin to conceal the origin of the funds.
“South Korean prosecutors have sold 320”
Live Bitcoin News reports that “Authorities first obtained the Bitcoin during a raid on an international gambling operation that ran from 2018 to 2021,” and The Coin Republic likewise notes that “authorities confirmed that the funds originated from a seizure linked to an illegal gambling operation that converted criminal proceeds into bitcoin.”
Cointelegraph’s coverage situates the assets inside government custody when it later discusses their return to a government-controlled wallet in February, describing the on-chain recovery steps that followed the seizure and loss.
Phishing theft and delay
According to multiple reports, prosecutors lost control of the seized Bitcoin after staff handling the assets fell victim to a phishing attack in August 2025 that allowed attackers to move the entire holding out of the government wallet; the breach went unnoticed for months.
Live Bitcoin News states that “Officials responsible for managing the seized cryptocurrency accessed a phishing website, allowing attackers to steal the entire holding,” while The Coin Republic similarly says “Officials responsible for managing the digital assets were victims of a phishing website in August of 2025.”
Both outlets report the theft was not detected immediately, with Live Bitcoin News noting “The breach remained unnoticed until December.”
Return timeline and discrepancy
The stolen funds were unexpectedly returned to prosecutors in February, but sources differ slightly on the exact timing and reported amount.
“According to the recent crypto news, South Korea has liquidated 320”
Cointelegraph reports that “The Bitcoin returned to a government-controlled wallet on Feb. 17,” and adds that “On Feb. 19, the Gwangju District Prosecutors’ Office said the hacker unexpectedly sent back 320.88 Bitcoin,”
Live Bitcoin News and The Coin Republic describe the returned sum as 320.8 BTC/320.8 Bitcoin.
The coverage therefore contains a minor discrepancy in the reported decimal precision of the recovered amount.
Immediate containment steps
Prosecutors and exchanges moved rapidly to limit outgoing transfers and secure the returned coins before liquidating them.
Live Bitcoin News reports authorities had “already restricted the wallet from several liquidation channels before the funds reappeared,”
Cointelegraph says authorities had “asked domestic and overseas exchanges to freeze the address, making it difficult to liquidate the funds,”
and The Coin Republic describes how officials “restricted the wallet’s access to liquidation channels” as part of recovery efforts prior to sale.
Sale and proceeds
After securing the coins, the Gwangju District Prosecutors’ Office sold the Bitcoin in batches over 11 days between Feb. 24 and March 6 and transferred the proceeds to the national treasury; authorities say the liquidation raised roughly 31.6 billion won (about $21.5 million).
“A hacker returned 320 BTC stolen from prosecutors, enabling a $21”
Live Bitcoin News notes the office “sold the Bitcoin in batches across 11 days, between Feb. 24 and March 6,”
The Coin Republic reports that “The sale raised roughly 31.6 billion won, equivalent to about $21.5 million, for the national treasury,”
and Cointelegraph confirms the coins were routed to a secure exchange wallet controlled by authorities prior to disposal.
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