Hacker returns 320 BTC to South Korea authorities after phishing theft
South Korean prosecutors have regained control of 320.8 BTC stolen from their wallet last year, assets valued at about $21 million.
According to local media, the Bitcoin was taken in August after investigators handling seized funds accidentally accessed a phishing website and entered a seed phrase. The breach was discovered only in December following an internal audit at the Gwangju District Prosecutors Office, The Block reported.
On Tuesday, the hacker unexpectedly sent 320.8 BTC back to a law enforcement wallet. Prosecutors said they had previously blocked transactions linked to the stolen assets on centralized exchanges, making it difficult to liquidate the funds. The hacker’s identity remains unknown.
The recovered coins have been transferred to a local exchange for safekeeping. Investigation is ongoing.
Nationwide review of digital asset custody
The incident has triggered a broader review of how investigative agencies manage seized digital assets. Last week, authorities revealed that Seoul Gangnam Police Station had also lost track of 22 BTC held in a cold wallet since 2021.Gyeonggi Bukbu Provincial Police Agency has launched an internal probe to determine how the leak occurred and whether there was any internal involvement.
Bithumb error and tightening oversight
The case comes shortly after a separate incident at Bithumb, where the exchange mistakenly credited users with 620 000 BTC during a promotion, worth about $44 billion. The platform said 99.7% of the funds have been recovered.Following these events, Financial Supervisory Service formed a task force to prepare Basic Digital Asset Act, marking next phase of crypto regulation. The bill is expected to introduce disclosure standards for token issuers and exchanges, licensing rules for digital asset service providers and stablecoin issuers. Final draft is scheduled for presentation in first quarter.
Since 2021, exchanges in South Korea have been required to register with Financial Intelligence Unit, comply with KYC and AML rules, use real name accounts and obtain cybersecurity certification. In 2024, Virtual Asset User Protection Act came into force. During 2025–2026, authorities plan to regulate stablecoins, allow spot crypto ETFs, open market to corporate investors and strengthen market surveillance.
Earlier, hacker returned $5 million in stolen funds to 1inch after negotiations.
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