South Korea recovers $21M in Bitcoin after phishing theft

South Korean prosecutors recovered $21M in Bitcoin after a hacker returned 320.8 BTC, unable to cash out due to frozen exchanges. The incident has sparked a review of digital asset management.

South Korean prosecutors have regained control of approximately 320.8 Bitcoin, valued at over $21 million, stolen from government custody in 2025 via a phishing-enabled theft. The Gwangju District Prosecutors’ Office reported that the hacker returned the assets after being unable to liquidate them, thanks to authorities’ swift action in freezing related exchange transactions. The Bitcoin was initially seized from a gambling platform but was lost when an internal phishing incident exposed recovery seed phrases. Upon the unexpected return, prosecutors quickly transferred the Bitcoin to a secure wallet on a local exchange. The hacker’s identity remains unknown, and investigations are ongoing, focusing on phishing sites and possible internal mismanagement. This recovery has prompted a nationwide review of digital asset management, especially after a separate incident involving the loss of 22 BTC by another police unit. The case highlights the effectiveness of blockchain analytics and coordinated law enforcement in digital asset security.