A Mysterious Return of Stolen Bitcoin
The Gwangju District Prosecutor’s Office has recently confirmed that 320.88 BTC, valued at approximately $21.5 million, was returned to the government’s custody wallet since February 17. The funds were subsequently transferred to a secure wallet on a domestic exchange. This development marks a unique chapter in the world of cryptocurrency theft and recovery.
The incident began in August 2025 when prosecutors fell victim to a phishing attack during routine custody verification procedures. A staff member accessed a fake website designed to mimic a legitimate crypto management platform, inadvertently exposing the wallet’s seed phrases to attackers. As a result, the attackers drained the 320 BTC shortly after.
The theft went unnoticed for months until January 23, 2026, when prosecutors discovered the missing Bitcoin during a routine check on seized assets. At this point, the theft had already lasted six months, raising questions about what could have been done with the stolen funds. Typically, hackers would use mixers and decentralized finance (DeFi) platforms to launder the money, making it difficult to trace. However, blockchain analysts observed that the funds remained mostly stationary after the initial theft, with no signs of frantic activity.
This unusual behavior has led to speculation about the thief’s intentions. It is possible that the hacker was waiting for the attention to die down before attempting to cash out safely, or they realized that the $20+ million was too hot to handle.
Prosecutors Take Action
Upon discovering the loss, the Gwangju office immediately reached out to major domestic crypto exchanges, requesting them to freeze any transactions involving the specific wallet address that held the stolen funds. According to prosecutors, the hacker appeared to return all Bitcoin voluntarily due to concerns about being unable to liquidate it.
The prosecutors’ office emphasized that their investigation remains active, focusing on phishing websites, malicious domains, and any other digital footprints left by the person who initiated the August hack. However, no suspects have been identified to date.
Unusual Recovery
The voluntary return of the Bitcoin is a rare occurrence in the world of cryptocurrency theft. According to estimates from enforcement agencies and recovery providers, the global recovery average of stolen assets is roughly 70% when law enforcement and exchanges cooperate on freezing assets. However, major hacks often yield as low as 0.4%.
The decentralized nature and anonymity options on the blockchain make such recoveries nearly impossible without the offer of a whitehat bounty. This case defies conventional logic, highlighting the unpredictable nature of cybercrime in the digital age.
Ongoing Investigations
As the investigation continues, prosecutors are examining all aspects of the phishing attack, including the methods used to compromise the system. The lack of a suspect and the mysterious return of the funds have only added to the intrigue surrounding this case.
The events surrounding the theft and recovery of the Bitcoin serve as a reminder of the challenges faced by law enforcement in the rapidly evolving world of cryptocurrency. With the increasing sophistication of cyber threats, the need for robust security measures and international cooperation has never been more critical.
In an industry where anonymity and decentralization are key features, the return of stolen funds is a rare and noteworthy event. This case may set a precedent for future investigations and highlight the importance of proactive measures in safeguarding digital assets.