South Korean authorities have successfully recovered the stolen 320.8 bitcoin after the hacker voluntarily returned it. The funds were lost last August in a phishing scam targeting the prosecutors’ asset managers.
The Gwangju District Prosecutors’ Office revealed that 320.8 BTC, valued at approximately $21 million, were restored to its electronic wallet on February 17. The incident underscores the persistent challenges of securely managing digital assets in legal proceedings.
How It All Started
The situation began when bitcoin belonging to A, the daughter of a couple arrested by the Gwangju Metropolitan Police Agency, was seized. The couple was accused of operating an illegal gambling site valued at $2.69 billion overseas from 2018 to 2021. To conceal their illicit profits, they converted the earnings into bitcoin to hide any trace of their activities.
While preparing to transfer the seized bitcoins to the national treasury, prosecutors discovered that all 320.8 BTC had vanished. The incident occurred in August 2025 when investigators accidentally accessed a phishing site mimicking a legitimate electronic wallet. This exposed critical login details that allowed the hacker to steal bitcoins.
In response, prosecutors froze related accounts at both local and international exchanges to prevent the stolen assets from being sold or moved. The situation, however, has exposed significant weaknesses in how law enforcement manages virtual currencies. It also prompted a review of its custody procedures.
No Bounty: Hacker Returns Stolen BTC!
In a surprising turn of events on February 19, 2026, all 320.8 BTC stolen were transferred from the hacker’s wallet to the prosecutors’ secure wallet, without a bounty. A source from the Gwangju District Prosecutors’ Office said the hacker likely returned the bitcoins to avoid being tracked. Notably, converting the stolen BTC to cash is currently impossible due to existing freezes.
Authorities have been monitoring the stolen bitcoins since they first disappeared, using blockchain tools and working with exchanges to track the hacker. After the transfer, the recovered bitcoins were moved again for safety. They eventually settle in a wallet on a major domestic exchange before being deposited into the treasury.
As of now, no information has been released about the hacker’s identity, and officials have not indicated any potential charges. The investigation continues to delve into the specifics of the phishing incident and any errors that may have been made. The successful recovery is particularly noteworthy given ongoing concerns about cybersecurity in asset recovery in South Korea.
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