Hacker Has a Change of Heart? Returns $21M Bitcoin Like a Boss

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Well, slap my face and call me Liz Lemon, because a hacker just decided to do the right thing and return 320 Bitcoin (BTC) stolen from South Korean prosecutors during a phishing scam. Yes, you heard that right-the same folks who probably still use “password123” just got their crypto back. Meanwhile, authorities are sweating more than a 30 Rock writer on deadline, promising to beef up their custody practices. Good luck with that!

Stolen Bitcoin Returned To Gwangju Prosecutors (No, Really)

On Thursday, the Gwangju District Prosecutors’ Office announced they got their 320.8 Bitcoin back after the hackers had a sudden attack of conscience (or maybe just realized karma is real). The assets, worth a cool $21 million, were transferred back to a wallet managed by the prosecutors. Apparently, the hackers moved the Bitcoin through more addresses than a New York City subway map before sending it home.

According to Digital Asset, the on-chain data showed the BTC was returned earlier this week. Because nothing says “I’m sorry” like giving back millions in crypto, right?

As reported by Bitcoinist, South Korean prosecutors were already in the hot seat last month when they realized a big chunk of seized BTC had gone missing. Turns out, they learned about the loss during a routine check-you know, like when you check your fridge and realize the cheese you bought yesterday is already gone. Oops.

After an internal review (read: panic meeting), they figured out the crypto was lost in August when investigators accidentally clicked on a phishing link. Classic. The hackers then drained the wallets faster than I drain a box of Cheez-Its.

Fun fact: The Bitcoin was originally seized during a 2021 investigation into an illegal gambling website. So, the prosecutors basically lost evidence in a crime. Irony, thy name is South Korea.

Authorities believe their measures-like blocking transactions and begging overseas exchanges for help-pressured the hackers into returning the funds. Because nothing says “please don’t hack us again” like a desperate plea.

“(Regardless of the recovery of the Bitcoin), we will do our utmost to apprehend the perpetrators in the future,” the Gwangju District Prosecutors’ Office stated. Translation: “We’re going to try really hard, we promise.”

Authorities Slammed Over Repeated Incidents (Shocker)

The Gwangju incident has sparked a nationwide review of how law enforcement handles virtual assets. And guess what? They found another security breach at the Seoul Gangnam Police Station. Because why stop at one scandal when you can have two?

Last Friday, the Gangnam station admitted they lost 22 BTC that were voluntarily submitted in 2021. The cold wallet was fine, but the Bitcoin inside? Gone. Poof. Vanished like my will to live after watching the last season of 30 Rock.

The Gyeonggi Northern Provincial Police Agency is now investigating whether any internal personnel were involved. Spoiler alert: Probably.

These incidents have everyone questioning South Korea’s Bitcoin custody practices, just as the country gears up for the Second Phase of the Virtual Asset User Protection Act. Because nothing says “we’re ready” like a series of high-profile screw-ups.

Meanwhile, financial authorities are inspecting local exchanges’ internal controls after the “ghost Bitcoin” incident at Bithumb. An employee accidentally distributed 620,000 BTC (worth $40 billion) to 249 users. Yes, you read that right. Someone hit the wrong button and caused a $40 billion oopsie.

Bithumb’s system failed to block the transaction, distorting market prices. Lawmakers called it a “structural vulnerability.” I call it a Monday.

The Financial Services Commission (FSC) is now considering prosecution measures against crypto asset price manipulators. Because if you can’t keep your Bitcoin safe, at least you can punish the people who take advantage of it.

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2026-02-20 15:32