Government and Crypto Hacks

[silpersurfer]

It does not matter whether the confiscated bitcoins are sold or not, just like what the US does, but they make it a Bitcoin strategic Reserve.
 
They have their own rules in managing each confiscated item, whether it will be sold or not because it is the right of the government if the government does not know who is affected by the phishing, but if the government knows the owner who was hacked then naturally the government gives it to the original owner and cannot be sold and recognized by the government.

[AmoreJaz]

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.

The government somehow has their budget to allocate for this kind of investigation. So it is just appropriate that they will get the stolen money and use it for the developmental projects of the government. So it is just right that the government will do something for these seized funds.

[Jewan420]

It is not possible to give a correct explanation of your incident, because we are not yet completely ignorant of the exact incident. Maybe you are still wrong to explain the incident completely, you should have added a source.

However, the government cannot control crypto, especially Bitcoin. It is impossible for any government or any organization to monitor or interfere with Bitcoin. Because Bitcoin is still decentralized and anonymous. The hacker may have stolen Bitcoin from some centralized medium where the government had surveillance. For example, a centralized exchange or a centralized crypto gambling site. Although Bitcoin is unregulated, these sites are regulated. If the government was able to directly monitor Bitcoin, the amount of BTC would have been several times higher.

[Nathrixxx]

It has even gotten to an extender some people do suspect that government are also part of the major sponsors to some of these hacks and still standing the best position to make seizures after this has been discovered as well, it has been found on countless occasions that those coins that were seized or confiscated when not accounted for at the long run, can running back into the government purse for their use at a long time plan.

[Yaunfitda]

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?

Perhaps you should understand why the government sold it, it could be that they want to compensate the victims of this hacked and return the money to the rightful owner. As for returning, he knows that he can't hide that Bitcoin for a long time as all analytics are going to follow it no matter what. So maybe that's what decided him to return the stolen Bitcoin and then not be prosecuted by the government of South Korea, so it's a win-win for them. South Korea is a Bitcoin and friendly country, they already have a lot of exchanges and regulation so I don't think that they need to study it anymore.

[Zlantann]

It has even gotten to an extender some people do suspect that government are also part of the major sponsors to some of these hacks and still standing the best position to make seizures after this has been discovered as well, it has been found on countless occasions that those coins that were seized or confiscated when not accounted for at the long run, can running back into the government purse for their use at a long time plan.

Only a rogue government will be part of a system or process that steals from its citizens. The government could develop a honey pot to study and track hackers. But sponsoring a scam project to defraud citizens is madness. Your thoughts are correct if the government sponsors these criminals to steal from victims in other countries, as in the case of North Korea. However, I doubt if the South Korean government will be part of such a criminal network that defrauds its citizens.

[davis196]

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?

320 BTC is worth 23.7 million dollars. Do you believe that the government of South Korea cares that much about 23 million dollars?
What do you mean by "try to study and understand the crypto and make in benefit of them"? I'm sure that the government of South Korea understands how crypto works and they've benefited of crypto by selling the confiscated BTC. Do you want the government of South Korea to just HODL the seized Bitcoins in a fund or something? The crypto world cannot be centralized by governments, which are confiscating cryptocurrencies, especially small amounts of crypto, like those 320 BTC.

[The Cryptovator]

Unless you post the new source link, it's hard to understand the real situation, because sometimes we fail to express our opinion. Hackers won't send Bitcoins to the government; otherwise, why would they have hacked? Rather, the government probably seized Bitcoin from the hackers somehow. Unless hackers mix Bitcoins, then it's pretty easy to know from where these Bitcoins came from.

Regarding with this, it is said that the hacker returned the bitcoin to the government. So I guess it is their right to do whatever about the stolen bitcoin. It will also be a long process to track every address to it's rightful owner.

Bitcoin Blockchain keeps all the records of transactions, and it couldn't be destroyed. When the government seized something legal in the country from someone, then they definitely returned it to the right owner unless it was involved with criminal activity. Like your mobile phone being stolen, one day it is seized from the thieves, and then the legal authority should return it to the right owner. So unless we read the full news, we can't say something. Governments don't have the right to sell my assets; they could sell only unclaimed confiscated assets, though each government would have their own rules.

[Publictalk792]

320 BTC is worth 23.7 million dollars. Do you believe that the government of South Korea cares that much about 23 million dollars?
What do you mean by "try to study and understand the crypto and make in benefit of them"? I'm sure that the government of South Korea understands how crypto works and they've benefited of crypto by selling the confiscated BTC. Do you want the government of South Korea to just HODL the seized Bitcoins in a fund or something? The crypto world cannot be centralized by governments, which are confiscating cryptocurrencies, especially small amounts of crypto, like those 320 BTC.

Although government is aware of working of crypto, their main goal is to have it controlled in safe way with no plans that they will make profit as buyer. They also do not keep taken Bitcoin over long times since price changes so fast and they do not wish to lose money of people in case market falls. Sale of such coins in shortest time possible also helps in avoiding more troubles, such as the example of the 2025 online scam in which these specific coins were nearly stolen during police care. Although Bitcoin was made in way that it is not controlled by one group, government can still handle it through making of laws that control trades in which most people keep their money. In making all amounts of money be treated as legal top need, state shows its care over law and order more than acting as crypto trader since criminals cannot find way around it.

[hero_the_bossman]

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?

320 BTC is worth 23.7 million dollars. Do you believe that the government of South Korea cares that much about 23 million dollars?
What do you mean by "try to study and understand the crypto and make in benefit of them"? I'm sure that the government of South Korea understands how crypto works and they've benefited of crypto by selling the confiscated BTC. Do you want the government of South Korea to just HODL the seized Bitcoins in a fund or something? The crypto world cannot be centralized by governments, which are confiscating cryptocurrencies, especially small amounts of crypto, like those 320 BTC.

Agreed through and through their GDP is in trillions of dollars.. it's a drop in the ocean for them.

[Zoomic]

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.

Hey, from your analogy, it is a free launch to the government which was exactly what I meant. Government get the coins for free. The victims in the whole chain remains the initial victim who lost their coins to the criminals. If there is a way for government to return those coins to the original owners, it would have been nice.

Just even a seized mixer, all the money therein is gone, even if it belonged to an innocent victim who was just trying to be private at that time.

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.

If arresting you is all it takes to control your bitcoin, they will arrest you. If you cannot be arrested, they will seize the coins. In any way, it is the control we are talking about.

[Kryptonite788]

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?[b/]

we need to understand that even though bitcoin is decentralized ,it is not fully invisible ,the idea that it is is a huge myth but this doesn’t necessarily mean they can centralize the world of cryptocurrency either ,they can only enforce regulatory measures to control how people interact with crypto.

[Bastketsrus]

It has been a usual practice by most government either to keep or sell off any seize asset not just on crypto mostly when the seizure is title to be illegal means if getting then from the possessor, and in this case the government can't share it to the citizens or less privilege as they do in most occasion in some items, the only option they have is either keep on their reserve or sell it. Government on their way uses this means to crack down some scammers seizing of their illegal acquired asset of this kind not just Bitcoin alone.

Yeah, that’s usually how governments handle seized assets, they either hold or sell them. In the end, Bitcoin still keeps circulating and being used in many ways, even on platforms like bitcoinbetting.

[MusaMohamed]

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.

If arresting you is all it takes to control your bitcoin, they will arrest you. If you cannot be arrested, they will seize the coins. In any way, it is the control we are talking about.

You're confusing between seizure your coins and freeze your coins.

With Bitcoin, if you store your bitcoins in non custodial wallets, governments can not freeze your coins because they don't have private keys. No one except you with private keys of your coins can freeze UTXOs in your wallets. It's different than altcoins with smart contracts and their centralization, governments can ask altcoin companies to freeze your coins even you store them in your non custodial wallets. It is more easily to freeze and seize your coins if you store them at centralized exchanges.

So with Bitcoin, governments only can freeze or seize your coins, in your non custodial wallets, if they already arrest you and get access to your private keys.

[AprilioMP]

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.

Correct. That's what we mean by being careful in public spaces. Bitcoin is highly transparent because every transaction can be tracked when anyone discovers a user's Bitcoin address, whether it's a private individual or a more powerful entity like a government.
People who don't fully understand how the Bitcoin system works will interpret Bitcoin's anonymity differently.

[Faisal2202]

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?

No they South Korea has known crypto for too long, they just sold the bitcoins they seized, which does not mean they knew nothing so they did not care to hold so they sold. That's not the way to see things, it is possible that they knew more than you so they did not held, they think it is better according to their laws to sell the bitcoins for now.

There was a time Germany sold 50k bitcoins and later they said they should create their own reserve too as every country is now talking about it so.

But it was late for them and you are right to think about South Korea in the same manner, too maybe they don't understand they made a mistake but 320 btc is not a big amount for a country like South Korea.