South Korea Converts 320 Bitcoins Recovered From Hacker Into 31.58 Billion Won for National Treasury

South Korean Prosecutors Convert Recovered Bitcoin Into 31.58 Billion Won for Treasury

South Korean Prosecutors have completed the sale of 320.88 bitcoins, originally seized from a phishing scam, transferring 31.58863 billion Korean won to the national treasury.

The bitcoins had been stolen in August last year during the handover process of seized assets, when officials fell victim to a phishing site, but were recovered in February after a coordinated investigation.

How Did The Bitcoins Go Missing And Return

The stolen funds were traced to Ms. A, the daughter of a couple arrested by the Gwangju Metropolitan Police Agency for running an illegal overseas gambling site valued at 390 billion won from 2018 to 2021.

Prosecutors discovered that the bitcoins went missing while being transferred to the national treasury following Ms. A’s sentencing of two years and six months, confirmed by the Supreme Court in January.

A source from the prosecution explained,

“After freezing domestic and international exchange accounts to prevent the Bitcoin from being liquidated, the hacker appears to have voluntarily returned all the Bitcoin.”

The recovered bitcoins were returned to the prosecutors’ electronic wallet on 17 February.

Why The Sale Was Carefully Managed

To prevent market disruption, the Gwangju District Prosecutors’ office sold the bitcoins in small amounts over 11 days, from 24 February to 6 March 2026.

The strategic approach ensured the sale secured optimal market value.

The operation converted the digital assets into 31.58 billion won, roughly $24.1 million, now added to the national treasury.

Authorities emphasised the sale as a demonstration of careful asset management and financial responsibility.

Tracking And Recovering Stolen Crypto In Practice

The rapid recovery highlights the increasing capacity of law enforcement to manage digital crimes.

After the theft was detected, investigators quickly traced the destination wallet and collaborated with domestic and international exchanges to freeze accounts and prevent further transfers.

This cooperative effort allowed full recovery of the bitcoins within three days, showcasing a precise and effective approach to cybercrime investigations.

Prosecutors Continue Investigation While Ensuring Market Stability

The Gwangju District Prosecutors’ Office has announced plans for an internal review to clarify how the bitcoins were lost during the transfer process.

Meanwhile, the hacker remains under scrutiny, with authorities continuing to monitor for any suspicious activity.

This case demonstrates how recovered cryptocurrencies can be safely liquidated for public benefit while maintaining legal oversight and market stability.