Government and Crypto Hacks

[KataifiDream]

This news just come to my feed, and it talks about the government of South Korea has sold roughly around 320 BTC. The said bitcoin comes from a hacker, specifically using phishing method. This hacker returned the stolen bitcoin allowing the prosecutor to confiscate and sell it to others. Does this mean the government are still tracking the world of bitcoin and crypto? If they have those amount of bitcoin, what do you think of the thought that they just sell it and don't try to study and understand the crypto to make in benefit of them? Or can they centralize the world of cryptocurrency?

[knowngunman]

No source? You should care to include source to your post next time when making post of this nature. From the little information we have from your post, we can not tell how the hacker was tracked and the reason behind the selling of confiscated Bitcoin.

As far as I know, South Korea is a crypto friendly country but with a very strict regulations to prevent fraud and money laundering as we seem to have here in your post. With everything under strict regulations, exchanges are licensed and users are required to do KYC before operating, the government can easily traced illegal activities as long as its carried out in the exchange. However, I don't know how they can justify selling the confiscated coins instead of returning them to the rightful owners. Now you see the importance of adding a source link to your post for the community to read more.

[Stepstowealth]

...

Try including a source next time, it helps people who want to read more and be sure of the legitmacy of your information.

No source?

I searched for the news and found this, https://www.thecoinrepublic.com/2026/03/11/crypto-news-south-korea-liquidates-320-btc-after-bizarre-hack-and-return-saga/?amp=

The government seized the bitcoin from relationship with an illegal gambling operation.

However, I don't know how they can justify selling the confiscated coins instead of returning them to the rightful owners.

They seized it, and since it belongs to the government, I know their actions was mostly legal, and then it seems they did what they have under their law concerning seized properties, the government sells it off and takes the cash.

[SilverCryptoBullet]

This news just come to my feed, and it talks about the government of South Korea has sold roughly around 320 BTC. The said bitcoin comes from a hacker, specifically using phishing method. This hacker returned the stolen bitcoin allowing the prosecutor to confiscate and sell it to others.

It can be hackers, can be illegal platforms like mixers, gambling sites without license, and can be a freeze by government with other reasons. The common red flag is you never know when it happens, so money in your account can be frozen, seized by government while you are almost unable to do anything to get it back.

Does this mean the government are still tracking the world of bitcoin and crypto?

Yes. Bitcoin blockchain is public, not private, and most of altcoin blockchains are public too so they're traceable.

If they have those amount of bitcoin, what do you think of the thought that they just sell it and don't try to study and understand the crypto to make in benefit of them? Or can they centralize the world of cryptocurrency?

What will governments do after such seizures is not important if they won't return money to you.
Like $40M crypto seized as Canada shuts TradeOgre exchange

[KiaKia]

This news just come to my feed, and it talks about the government of South Korea has sold roughly around 320 BTC. The said bitcoin comes from a hacker, specifically using phishing method. This hacker returned the stolen bitcoin allowing the prosecutor to confiscate and sell it to others. Does this mean the government are still tracking the world of bitcoin and crypto? If they have those amount of bitcoin, what do you think of the thought that they just sell it and don't try to study and understand the crypto to make in benefit of them? Or can they centralize the world of cryptocurrency?

If the bitcoin is from any illegal activities the government have the right to seize it and do whatever they like with the bitcoin, also this amount of bitcoin will be eaten by the present Bitcoin marketcap like nothing happened.

If they will sell or not it makes no difference, we won't even notice that it's been sold, while selling is ongoing buying is also going on, I hate the fact that these money automatically belongs to the government but who are we to blame if not these rules breakers.

I still believe that Government are also stealing those assets too, because if the hacker can returned the stolen bitcoin then the rightful owners of those bitcoin can be traced.

[joniboini]

This is probably the fourth time I've seen news about the South Korean government and crypto this year. The previous ones are talking about how some hackers stole their confiscated funds iirc. It's clear that they need to improve how they handle the funds. I think they managed to drain the confiscated HW or something? Looks like they didn't move the funds from the scammers' HW. Good thing they don't get "hacked" again.

Either hire experienced users with cold storage experience or improve how their management stores funds. CMIIW.

[pawanjain]

This news just come to my feed, and it talks about the government of South Korea has sold roughly around 320 BTC. The said bitcoin comes from a hacker, specifically using phishing method. This hacker returned the stolen bitcoin allowing the prosecutor to confiscate and sell it to others. Does this mean the government are still tracking the world of bitcoin and crypto? If they have those amount of bitcoin, what do you think of the thought that they just sell it and don't try to study and understand the crypto to make in benefit of them? Or can they centralize the world of cryptocurrency?

Is this for real ? Why would a hacker send his bitcoins to the government ?
Does it mean the government officials are involved in it and are trying to save the hacker from prison.
Or have they caught the hacker and sentenced him and is selling the confiscated bitcoins in the open market.
I think they should be returning it to the original sender instead of selling it for themselves.

[rat03gopoh]

Does this mean the government are still tracking the world of bitcoin and crypto? If they have those amount of bitcoin, what do you think of the thought that they just sell it and don't try to study and understand the crypto to make in benefit of them? Or can they centralize the world of cryptocurrency?

The news you're trying to raise has nothing to do with this question. The government certainly has a better understanding of crypto than the average citizen. Their Bitcoin sales (if it's true story) are a way of exploiting crypto for the "benefit" of the state. Further evidence is their dynamic crypto policies; even if they may seem disadvantageous to enthusiasts, they have pursued these policies from a broader perspective and with diverse interests.