South Korean prosecutors recovered approximately $21.4 million in Bitcoin that was stolen from their custody last year, local reports indicate. The loss occurred after investigators inadvertently entered recovery seed phrases on a phishing site during a probe of a gambling platform.
The hacker returned 320.8 BTC after authorities blocked centralized exchange transactions from the stolen wallet, limiting the ability to liquidate the assets. The hacker’s identity remains unknown. Prosecutors have since transferred the returned bitcoin to a local exchange for safekeeping while continuing efforts to trace the individual responsible.
The incident has triggered a nationwide review of how seized digital assets are managed. Other cases, including a 22 BTC loss at Seoul Gangnam Police Station dating back to 2021, have prompted internal investigations by agencies such as the Gyeonggi Bukbu Provincial Police to assess procedural gaps and potential internal involvement.
