Government and Crypto Hacks

[betswift]

Governments sell seized BTC because cash is what they understand. Holding volatile assets doesn't fit how public funds are managed.

They are usually obliged legally to do so.

[dansus021]

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?

I just read it and yes, The National Tax Service (NTS) from South Korea has begun preparations to build a tracking system to levy taxes on cryptocurrency investment gains, in line with the government’s expansionary fiscal policy and the need for additional revenue

They Sell it because maybe there is some kind of law that they should sell it. Most governments do this US, German and now South Korea. this by far that I know.

Centralizing Bitcoin itself is almost impossible because of its Bitcoin decentralized nature. Which US wants all mined bitcoin is from the United States.

[john_egbert]

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?

I just read it and yes, The National Tax Service (NTS) from South Korea has begun preparations to build a tracking system to levy taxes on cryptocurrency investment gains, in line with the government’s expansionary fiscal policy and the need for additional revenue

They Sell it because maybe there is some kind of law that they should sell it. Most governments do this US, German and now South Korea. this by far that I know.

Centralizing Bitcoin itself is almost impossible because of its Bitcoin decentralized nature. Which US wants all mined bitcoin is from the United States.

Because it becomes "nobodys", so to speak. So they return it back - to the market. So that it would be bought up again if needed afterward.

[Rgram]

There isn’t any thing new about government of several nations coming by some Bitcoin through seizures. Just as in this case, the seizure was from a hack, it’s always being about getting these coins from criminals whom acquired them through some illicit means and a way of using it to benefit the nation. While some nations like America would prefer to hold it and have it add up to its treasury, South Korea chose to Sell it in this case and that still brings money into its economy while putting more Bitcoins into circulation. It’s not entirely a bad idea and it in a way, doesn’t show a lot of empathy from the government towards Bitcoin just to ensure it’s citizens doesn’t seem to find the government being very hands open to Bitcoin but rather, see it as a necessary step to curb crime.

[vanesha]

If the hackers are from a phishing site, they should be avoidable or counteractable. If the authorities want to eradicate them, it should be possible, so they can't control the world with crypto or concentrate it on a single country. Phishing usually exploits people's weaknesses, namely thoroughness. Some also play a psychological role so that if they fall for it, it's easy to get their money. This is actually a simple attack, but so many people fall for it.

[CryptoYar]

Reason why governments usually sell Bitcoin they take other than keep it is because law forces them to put cash in national safe and coins are big security risk as has been shown by last police group being hacked.
As they sell these specific coins, they are continuing to study technology and make new rules, such as giving companies the power to trade in crypto and starting Bitcoin ETFs later in 2026.
And governments could try to control way people can trade in crypto using rules and block lists but could never own all of Bitcoin as code behind it is open to all and is run by everyone.
Selling their coins back to people, government is also really helping to spread stock among many people instead of having it all in their hands, which shows that crypto laws affect everyone same, no matter if you are average or high level official.

[AprilioMP]

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?

The government can track Bitcoin transactions as long as it has the Bitcoin address it wants to track. Bitcoin is highly transparent because there is nothing hidden in any transaction activity. Therefore, if you don’t want others to know about your Bitcoin, be careful when you’re in public spaces.
If the government considers Bitcoin to be a poor investment, that’s not a problem; after all, most of the Bitcoin in their possession has been acquired not through purchases but through seizures.

[notocactus]

The government can track Bitcoin transactions as long as it has the Bitcoin address it wants to track. Bitcoin is highly transparent because there is nothing hidden in any transaction activity. Therefore, if you don’t want others to know about your Bitcoin, be careful when you’re in public spaces.
If the government considers Bitcoin to be a poor investment, that’s not a problem; after all, most of the Bitcoin in their possession has been acquired not through purchases but through seizures.

Don't leave traces of your Bitcoin addresses and your identity or activities on the Internet. People can use these things, connect dots and figure out who you are, how many Bitcoin addresses you likely used so far and how many bitcoins you have in the past, in the present and more about your transaction history.

Public spaces mean about space online and offline. If you leak your identity, your activities with Bitcoin anywhere either online or offline, you will be traced by someone in the community around you or in the Internet space by online detectives or governments.

https://bitcoiner.guide/privacy/
https://bitcoin.org/en/protect-your-privacy
https://www.lopp.net/bitcoin-information/privacy.html
General guidelines for sending BTC transactions.

[Easteregg69]

marginalizing people to make them criminals according to law.

Nothing new. What drugs was always about. I be cool. Not running for president.

[suzanne5223]

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?

Not really, but we have some independent crypto platforms ^{(like Sumsub Crypto Monitoring, CipherTrace, Crystal Intelligence, TRM Labs, Chainalysis, etc.)} that automatically search every blockchain for something illegal or suspicious. I believe they mostly utilize the platform service to monitor the attacker they are after. We should expect a high level of KYC in the future, with restrictions similar to those on online gambling platforms, given the widespread abuse of privacy practices by many online casinos.

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?

I believe we don't have a government that studies and understands crypto ever since the US government has a positive stance towards Bitcoin, but there's always the practise of self benefit from the government due to their political beliefs. So, the reason why they choose to sell the BTC is something only the South Korean government understands, but I won't be surprised if they try to centralize Bitcoin in the future, which is why we're advising people to prioritize self custodial more than ever.

[sokani]

Well, it's good to know that the stolen fund has been returned.

But, if I am being honest, something about this whole thing isn't right. This is the same Korean government that accidentally exposed the seed phrase of crypto seized from tax evaders during a national television broadcast last month, and now they are reporting that 320.8 BTC was stolen back in December last year, but no one noticed, and it has now been returned.

I feel like someone or a group of persons that is/are not happy that the government proposed to hold a crypto reserve sabotaged the funds to make sure they change their mind.

[Die_empty]

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 government hires some of the qualified and experienced blockchain forensics investigators, crypto tracers, or blockchain analysts. These officials use several tools, such as blockchain forensics software, KYC compliance, demixing tools, etc., to analyse public blockchain transactions. So we can say that the government can track and recover stolen cryptocurrencies.

The US GENUIS ACT forbids the government from selling seized Bitcoin. South Korea doesn't have similar laws, so selling the recovered Bitcoin is within the provisions of the law.

But I am disappointed that the funds realised from the sale of the Bitcoin were sent to the country's treasury. And nothing was said about the victims of the crime. 

[Zoomic]

... 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?

Do you mean, instead of the government wasting their time to print fiat in order to buy bitcoin, they will instead channel their efforts to catching alleged criminals, confiscate their bitcoin, posses it or send it to their strategic reserve.

Are you just realizing the game? It's been on for a while. Why buy bitcoin if we can get it for free?

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

In as much as the blockchain remains transparent, the government will not stop tracking and trying to control everyone.

[hd49728]

Do you mean, instead of the government wasting their time to print fiat in order to buy bitcoin, they will instead channel their efforts to catching alleged criminals, confiscate their bitcoin, posses it or send it to their strategic reserve.

Governments have their jobs to do, and tracing, arresting and seizing money from criminals are parts of their jobs. Whatever the money is in any form, fiat currencies like cash, CBDCs, bank accounts, bitcoins or altcoins, governments can seize it from criminals but what they will do next need to be discussed, considered thoroughly based on their national constitutions and existing laws about that.

Are you just realizing the game? It's been on for a while. Why buy bitcoin if we can get it for free?.

It's not like get it for free.

Those bitcoins were gotten by victims somehow with actual money or from mining, then victims lost their coins to criminals or hackers, and eventually those coins changed hands one more time to governments. You see, there is no free lunch, from the beginning to criminals then governments.

[sana54210]

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 do you mean? That statement makes no sense at all. Why do they need the bitcoins to study and understand crypto? And how the hell are they going to centralize the world of cryptocurrencies by only having access to bitcoins or any other cryptocurrency? It's not like they can do anything with them, coins available in a wallet or an exchange or anywhere can't be opened and investigated like a physical object, that's not possible, so only because they have confiscated some bitcoins from a person and have sold them in the market, it doesn't mean they are getting some ultimate control over the network or anything like that.

The US government has been selling thousands of bitcoins from the silk road incident, and I've never seen anyone asking whether they are going to centralize Bitcoin now or whether they will use those coins to try and understand crypto. They don't need the coins for that, every information about cryptocurrencies, how they are created, how they can be stored, how they work, and everything else is publicly available for anyone to read or watch to understand, the governments can do that too if they want to understand anything.

[ThemePen]

The government hires some of the qualified and experienced blockchain forensics investigators, crypto tracers, or blockchain analysts. These officials use several tools, such as blockchain forensics software, KYC compliance, demixing tools, etc., to analyse public blockchain transactions. So we can say that the government can track and recover stolen cryptocurrencies.

The US GENUIS ACT forbids the government from selling seized Bitcoin. South Korea doesn't have similar laws, so selling the recovered Bitcoin is within the provisions of the law.

But I am disappointed that the funds realised from the sale of the Bitcoin were sent to the country's treasury. And nothing was said about the victims of the crime. 

Now that governments have become very good at using tracking tools to find down stolen digital money and get it back to person, all too mostly there seems to be little care given on giving that money back to person. Current rules in United States such as planned Strategic Bitcoin Store show hard choice in which government may keep taken Bitcoin as country resource other than pay people of robbery.
But, hopefully, we are at last getting good change to people first laws, including new March 2026 change in South Korea which, in fact, thinks of crypto as money and needs direct pay backs in cases of theft. Even though getting back step in places such as U.S is still slow and hard to regular buyers, these new world steps are sign that governments are slowly stopping habit of holding money that was stolen in banks and even trying to take care of people who lost their money.

[Cryptomultiplier]

Do you mean, instead of the government wasting their time to print fiat in order to buy bitcoin, they will instead channel their efforts to catching alleged criminals, confiscate their bitcoin, posses it or send it to their strategic reserve.

Governments have their jobs to do, and tracing, arresting and seizing money from criminals are parts of their jobs. Whatever the money is in any form, fiat currencies like cash, CBDCs, bank accounts, bitcoins or altcoins, governments can seize it from criminals but what they will do next need to be discussed, considered thoroughly based on their national constitutions and existing laws about that.

Are you just realizing the game? It's been on for a while. Why buy bitcoin if we can get it for free?.

It's not like get it for free.

Those bitcoins were gotten by victims somehow with actual money or from mining, then victims lost their coins to criminals or hackers, and eventually those coins changed hands one more time to governments. You see, there is no free lunch, from the beginning to criminals then governments.

The government of South Korea still has its citizens under fiat control and that's why they instead preferred to sell the BTC that was seized instead of holding it in a strategic reserve bank like the way U.S does with any crypto assets seized or confiscated.

If the system of a country works well and citizens enjoy good benefits of the economy, there would be hardly the need for BTC investment to get richer because the economy is already favourable, but in a country where the fiat currency is nothing to write home about for the common man, the government would only monitor to ensure Bitcoin investment isn't a scam or ponzi scheme, so that the citizens can have their benefits of using Bitcoin as a source of income and wealth accumulation instead of using it for terrorism and sponsorship of crime.

[MusaMohamed]

In as much as the blockchain remains transparent, the government will not stop tracking and trying to control everyone.

Governments are able to track Bitcoin addresses, link them as belong to same wallets, track transactions, and seize your bitcoins if they have orders for arresting you as criminals but they can not control your bitcoin without arresting you and if you store your bitcoin in non custodial wallets.

They or exchanges can easily freeze your coins in your accounts (custodial wallets) but it's not safe and recommended place for storing your bitcoin.

Bitcoin is unique and different than altcoins, stablecoins which can be frozen even in non custodial wallets. Governments can easily force centralized exchanges freezing your coins in accounts or wallets.
Reminder: do not keep your money in online accounts.
PSA: Most stablecoins can be frozen, even in your own wallets.
Stablecoins and blacklists.
Stablecoin blacklists: How they work and who controls them.

[Donneski]

If the hackers are from a phishing site, they should be avoidable or counteractable. If the authorities want to eradicate them, it should be possible, so they can't control the world with crypto or concentrate it on a single country. Phishing usually exploits people's weaknesses, namely thoroughness. Some also play a psychological role so that if they fall for it, it's easy to get their money. This is actually a simple attack, but so many people fall for it.

On paper it's easy to say that they can be eradicated but in reality, enforcing it is actually hard. You need to understand that these scammers operate across borders and knows how to adapt.
Sensitising people about their activities is a very helpful and realistic approach but you see complete elimination, I don't think it's something the government can achieve.

[goldkingcoiner]

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?

Of course the government is doing their best to prevent money laundering and theft, even in crypto. But they do not have much success due to the decentralised and unmanipulatable nature of Bitcoin as well as other cryptocurrencies.

The confiscation is always because of centralised part, like a crypto exchange or a some other platform which holds your crypto for you instead of letting you hold it yourself.

I do not think they will ever be able to centralize crypto.