South Korean prosecutors have recovered more than 320 Bitcoin that went missing from government custody in 2025 after the funds were unexpectedly returned to an official wallet earlier this week, according to local media reports.
The Gwangju District Prosecutors’ Office said it regained control of 320.88 Bitcoin (BTC), valued at roughly $21.3 million at the time of writing, local outlet The Chosun Daily reported Thursday. Prosecutors confirmed that the unidentified hacker transferred the stolen cryptocurrency back to the authorities’ wallet on Tuesday. The funds were later moved to a secure wallet at a domestic digital asset exchange also controlled by officials.
The Bitcoin had disappeared in August 2025 during an ongoing investigation. The loss was discovered on Jan. 23 during a routine inspection of seized financial assets, as previously reported by Cointelegraph. Authorities attributed the breach to a phishing attack that exposed access credentials.
Although the exact motive for returning the funds remains unclear, prosecutors said they had previously sent cooperation requests to local exchanges asking them to freeze the hacker’s wallet address, limiting the ability to liquidate the stolen assets.
Authorities continue search for suspect
Despite recovering the funds, investigators said efforts to identify and arrest the individual responsible will continue. The prosecutors’ office told local outlet Digital Asset Works that authorities remain committed to apprehending the suspect and are examining related phishing websites and malicious domains linked to the attack.
Custody lapses spark broader scrutiny
The recovery comes about a week after another incident in which 22 Bitcoin—worth approximately $1.5 million at the time—were transferred out of a police-controlled cold wallet in Seoul, according to Cointelegraph. Officials said the physical device itself was not stolen, but the assets were moved externally.
The incident intensified scrutiny over how authorities safeguard confiscated cryptocurrency. The Gyeonggi Northern Provincial Police Agency has since launched a separate investigation to identify those responsible for the 22 Bitcoin transfer. Those funds had originally been voluntarily surrendered to authorities in November 2021 during a prior investigation.
