South Korean Prosecu...

South Korean Prosecutors Recover $21M in Bitcoin After Hacker Returns Stolen Funds

By José Oramas February 20, 2026 In Bitcoin, Hackers, South Korea

A captivating arrangement of Bitcoin coins alongside a wooden gavel and an antique book, symbolizing the intersection of cryptocurrency and law. — Source:AdobeStock

South Korean prosecutors recovered 320.8 BTC, worth roughly US$21.4 million, that was stolen from government custody after investigators inadvertently entered recovery seeds into a phishing site.
The hacker returned the funds voluntarily after prosecutors blocked linked exchange accounts, making it nearly impossible for the attacker to liquidate the stolen assets.
The recovery follows reports of other missing government-held crypto, including 22 BTC missing from the Seoul Gangnam Police Station, prompting further internal investigations into potential insider involvement.

South Korean prosecutors have recovered about US$21.4 million (AU$32.7 million) in Bitcoin (BTC) that was stolen from government custody last year, local media reported.

The Gwangju District Prosecutors’ Office discovered in December that Bitcoin seized from a gambling platform raid had been taken. An internal review found the theft happened in August after investigators entered wallet recovery seed phrases on a phishing site.

The electronic wallet site accessed to verify Bitcoin storage was a phishing site, and the Bitcoin is believed to have been lost during this process.

The Gwangju District Prosecutors’ Office

On Tuesday, the hacker sent back 320.8 BTC to a wallet controlled by prosecutors, according to sources. Prosecutors said they had blocked transactions linked to the hacker’s wallet at centralised exchanges, making it harder to cash out.

Bitcoin Returns, No Trace of Hacker

And no, the hacker has not been identified. The Bitcoin just suddenly reappeared in the wallet after six months of being missing.

The hacker appears to have returned all Bitcoin voluntarily due to concerns about being unable to liquidate it. The investigation into the circumstances of the Bitcoin loss will continue.

The Gwangju District Prosecutors’ Office

Authorities moved the returned Bitcoin to a local exchange for safekeeping and said they will keep trying to trace the attacker.

A separate probe recently found the Seoul Gangnam Police Station has been missing 22 BTC stored in a cold wallet since 2021. The Gyeonggi Bukbu Provincial Police Agency told The Block it has opened an internal investigation into the circumstances and whether any insiders were involved.