According to local media reports, authorities sold the recovered bitcoins in small batches over 11 days to avoid disrupting the market.
South Korean prosecutors have sold 320.8 bitcoins, temporarily removing the crypto from government custody after a phishing incident.
The Gwangju District Prosecutors’ Office said it sold 320.8 bitcoins (BTC) at the market price, transferring 31.59 billion won (about $21.5 million) to the national treasury, The Chosun Ilbo reported on Tuesday.
Authorities reportedly sold Bitcoin in small batches over an 11-day period between February 24 and March 6 to avoid disrupting the market.
According to reports, the bitcoin was originally seized from a suspect accused of operating an illegal gambling website that allegedly made about 390 billion won ($285 million) in bets between 2018 and 2021.
Bitcoin, lost in a phishing attack, was restored earlier this year
According to reports, prosecutors discovered that the cryptocurrency went missing during a custody transfer in August 2025 when the asset managers were tricked by a phishing website. The funds were later found in the hackers’ wallets.
Bitcoin returned to government-controlled wallets on February 17 after authorities asked domestic and foreign exchanges to freeze addresses, making it difficult to liquidate funds.
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On February 19, the Gwangju District Prosecutors’ Office said the hacker unexpectedly returned 320.88 bitcoins, which were then transferred to a secure exchange wallet controlled by authorities.
South Korean courts reconsider crypto losses in debt restructuring cases
In other South Korean crypto news, courts are reportedly now reconsidering how crypto-related debts are handled in personal recovery cases.
According to a report on Sunday from local media outlet EToday, newly established recovery courts in Daejeon, Daegu and Gwangju are preparing guidelines to generally exclude investment losses in stocks and cryptocurrencies from liquidation cost calculations.
The change treats crypto investment losses more like ordinary asset losses rather than speculative loans, potentially reducing repayment obligations for individuals undergoing court-supervised debt restructuring, EToday reported.
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