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South Korean prosecutors have recovered $21 million worth of bitcoin that was stolen from their custody last year.
The hacker returned the bitcoin after authorities blocked centralized exchange transactions involving the stolen assets, though prosecutors said the hacker’s identity remains unknown.

South Korean prosecutors have recovered roughly $21.4 million worth of bitcoin
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stolen from their custody last year, according to local media reports.

Last December, the Gwangju District Prosecutors' Office discovered that they had lost the bitcoin seized from a raid on a gambling platform. An internal investigation revealed that the bitcoin was hacked in August after investigators mistakenly accessed a phishing website and entered recovery seed phrases.

On Tuesday, the hacker returned 320.8 BTC to the wallet held by authorities, local news outlet Digital Asset reported. Prosecutors said they had blocked centralized exchange transactions involving the hacker's wallet, making it difficult to liquidate the bitcoin. The hacker’s identity remains un known.
Prosecutors have since moved the returned bitcoin to a local exchange for safekeeping and will continue to track down the hacker's identity, the report said.

Meanwhile, the incident has prompted a nationwide review of investigative agencies' management of seized digital assets. Last week, the investigation revealed that the Seoul Gangnam Police Station has also lost track of 22 BTC stored in a cold wallet since 2021.

The Gyeonggi Bukbu Provincial Police Agency confirmed with The Block that it has launched an internal probe to determine the exact circumstances of the leak and whether there was any internal involvement.

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Alexey Pertsev, the founder of the cryptocurrency anonymization service Tornado Cash, is facing charges from Dutch authorities for alleged involvement in laundering a sum of $1.2 billion.
Alexey Pertsev Accused of Over Thirty Illegal Acts
Tornado Cash is increasingly coming under scrutiny for its association with cryptocurrency crime, rather than providing intended services. Dutch investigators have been tracking Pertsev in connection with a series of investigations, including 36 suspicious transactions. Among the most prominent was 175 ETH transferred from the Ronin Bridge crypto protocol, linked to Axie Infinity.
Other illegal transactions subject to Dutch prosecutors' charges include transactions via decentralized protocols Harmony and Nomad Bridge.
Keith Cheng, lawyer for Alexey Pertsev, stated that "prosecutors accuse Pertsev of money laundering and generally describe it, but do not specify the specific acts allegedly committed."
Dutch authorities, however, strongly accuse Pertsev of involvement in money laundering. This claim gains weight considering that Pertsev was arrested in August 2022 by the Dutch Fiscal Information and Investigation Service (FIOD) on suspicion of laundering $7 billion in cryptocurrencies.
OFAC Sanctions Against Tornado Cash
Before Pertsev's arrest, Tornado Cash was sanctioned by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury for involvement in money laundering totaling several billion dollars. Among the organizations accused of using Tornado Cash services was the North Korean hacking group Lazarus.
Pertsev was arrested shortly after these sanctions, but was later released on bail. In August of the following year, he was arrested again, this time on charges of money laundering, with the arrest conducted by the FBI. This occurred at a time when the cryptographic detective ZachXBT reported tracking a suspicious wallet linked to Tornado Cash since the beginning of 2023.
Since his first arrest in 2022, Pertsev has vehemently denied any involvement in money laundering or violations of money laundering laws.
The trial of Alexey Pertsev is scheduled for March 26 in the Netherlands.
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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A federal police officer from Australia denies allegations of unauthorized confiscation of bitcoins from a hardware wallet at the scene of intervention and their transfer to the Binance cryptocurrency exchange.
The Australian anti-corruption agency (NACC) accused this federal police officer of emptying the Trezor hardware wallet, containing 81.62 bitcoins, at the scene of the incident. To support their claim that the bitcoins were transferred to his ownership, authorities relied on cryptocurrency tracking programs.
Raid Reveals an Empty Wallet
According to recent information, the police discovered the wallet during a drug raid at the accused's house, but waited approximately three weeks for a court order to open it. When it was finally opened, there were no bitcoins inside the wallet, as Federal Detective William Wheatley likely transferred them shortly after the raid.
At the time of the raid in 2019, the wallet was valued at $309,000, but its value now stands at approximately $4.2 million.
Tracking and Disclosure: Significance of Cryptocurrency Software
Detective Sergeant Deon Achtypis from the cybercrime unit stated that authorities initially suspected someone from a criminal syndicate might be responsible for the bitcoin theft.
Suspicion fell on Wheatley after the discovery of the wallet's recovery phrase device, a series of 12 to 24 random words used to regain access in case of wallet loss or theft.
Extensive investigation of IP addresses used to access the stolen bitcoins through cryptocurrency tracking software eventually led Achtypis to Wheatley.
Disclosure and Legal Ramifications
"I judge that a member of the police force may have been involved in cryptocurrency manipulation."
Globally, law enforcement agencies are adopting cryptocurrency tracking software to uncover illegal activities associated with digital currencies.
In August 2023, Canadian law enforcement agencies announced the initiation of using Chainalysis Reactor software to track illegal crypto transactions.
Furthermore, the development of encryption detective software leads to higher success in recovering stolen cryptocurrencies. On January 29, over $674 million was retrospectively recovered from over 600 major cryptocurrency hacks.

Defense of the Accused
Meanwhile, Wheatley maintains his innocence in the accusations of abuse of public office for personal gain, theft, and involvement in criminal activity.
He is determined to face charges related to the stolen bitcoins from the Trezor wallet, which occurred at a time when Trezor reported a security flaw affecting nearly 66,000 users.
On January 1, it was announced that Trezor detected unauthorized access to a third-party support portal on January 17, warning of potential user data compromise for those who communicated with the Trezor support team since December 2021.
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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
 
 

Two teenagers from California are facing adult felony charges after authorities say they carried out a violent home invasion in Scottsdale, Arizona, targeting a family they believed controlled tens of millions of dollars in cryptocurrency.

Key Takeaways
Two teenagers allegedly targeted a Scottsdale home in a failed attempt to steal $66 million in cryptocurrency.The suspects posed as delivery drivers, assaulted residents, and fled before being arrested after a brief police chase.Investigators say the attack may be part of a growing trend of violent “wrench attacks” linked to crypto theft.
According to investigators, the incident unfolded on January 31, 2026, when 17-year-old Jackson Sullivan and 16-year-old Skylar LaPaille allegedly drove more than 600 miles from San Luis Obispo County to the Sweetwater Ranch neighborhood in Scottsdale. Prosecutors say the pair were attempting to steal roughly $66 million in digital assets, but the plan collapsed after police arrived during the attack.
Delivery disguise used to gain entry
Police say the suspects posed as delivery workers, wearing FedEx- or UPS-style uniforms and carrying a moving dolly. When a resident opened the door, the teens allegedly forced their way inside. A male victim was thrown to the ground, while two adults were restrained with duct tape.
During the assault, the suspects reportedly demanded access to the family’s cryptocurrency holdings. When one victim denied having control over any digital assets, investigators say the attackers escalated the violence, forcing his head into the ground.
A third victim, the adult son of the household, was elsewhere in the home at the time. Authorities say he managed to hide and call emergency services while the assault was still in progress.
Arrest after brief chase
Scottsdale police arrived quickly, triggering a chaotic escape attempt. The suspects fled in a blue Subaru fitted with stolen license plates, leading officers on a short pursuit that included driving into oncoming traffic. The chase ended at a dead end, where police boxed in the vehicle and arrested both teenagers without further injuries.
During the arrest, officers recovered a 3D-printed firearm from the suspects. The weapon contained no ammunition, and investigators have not confirmed whether it was functional.
Alleged recruitment via encrypted messaging
Investigators believe the teens did not act alone. According to police filings, Sullivan and LaPaille claimed they were contacted through the encrypted messaging app Signal by individuals known only as “Red” and “8.”
These alleged organizers are believed to have supplied the Scottsdale address and sent $1,000 to cover expenses. Authorities say the money was used to purchase disguises, duct tape, and other supplies at Target and Home Depot. Detectives are still working to identify and locate the alleged coordinators.
Facing adult charges
Both suspects are charged with eight felony counts, including kidnapping, aggravated assault, second-degree burglary, aggravated robbery, possession of burglary tools, and fraudulent schemes and artifices. Sullivan also faces an additional charge for unlawful flight from law enforcement.
Although initially held in juvenile detention, both teens were later released on $50,000 bonds and are now under electronic monitoring while awaiting trial as adults.
Part of a growing crypto crime trend
Security analysts have classified the Scottsdale case as a “wrench attack,” a term used to describe physical assaults aimed at forcing victims to hand over digital assets. The attack is believed to be the first such case recorded in the U.S. in 2026, following a sharp increase from 41 reported incidents in 2024 to around 70 in 2025.
The home invasion occurred on the same day Nancy Guthrie, the mother of Savannah Guthrie, was reported missing in Tucson. While a separate cryptocurrency ransom demand linked to that case led to the arrest of a California man, authorities have stated there is no direct evidence connecting the Scottsdale teenagers to the Guthrie investigation.
Law enforcement officials say the case highlights the growing risks faced by individuals perceived to hold large amounts of cryptocurrency, particularly as organized groups increasingly turn to real-world violence when digital theft proves difficult.
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It is time for a federal judge to decide on the length of the sentence for Sam Bankman-Fried, the founder of FTX. Both the defense and the U.S. Department of Justice have presented their arguments, as well as statements from FTX creditors and close friends and family of Bankman-Fried.
Emotional Impact on Both Sides
Prosecution and defense representatives have now provided their perspectives on the sentence to the judge, including emotional arguments gleaned from letters from people associated with FTX and Bankman-Fried. The key question is whether Sam Bankman-Fried should be sentenced to decades in prison, as the U.S. Department of Justice desires, or if his punishment should be more lenient, as suggested by the defense.
Consideration of Evidence and Behavior
Judge Lewis Kaplan will have to consider various factors, including letters from Bankman-Fried's family, former FTX employees, and former customers. These materials offer insight into the impact of FTX's collapse on its customers and on Bankman-Fried himself.
Arguments For and Against Severe Punishment
While the defense argues that Bankman-Fried faces enormous personal consequences and should not be harshly punished, the Department of Justice emphasizes his deliberate violation of the law and doubts about his efforts to remedy the damage.
Impact on FTX Victims
In statements about the impact on victims submitted by the Department of Justice, former FTX customers describe how the exchange's collapse affected their finances and lives. These statements reveal how deeply FTX's collapse affected the lives of many people.
Technical vs. Emotional Compensation
While the defense claims that FTX customers will be fully compensated after the bankruptcy proceedings, several creditors point out that they will only receive the value of their cryptocurrencies as of November 2022, not the potential profits they could have had. The letters also state that refunding the funds will not compensate for the time when customers did not have access to them.
Judge's Decision
Among other factors likely to be considered by Judge Kaplan are Bankman-Fried's behavior during the process, testimonies, and the possibility that he could again violate the law. The defense emphasizes that the government is trying to break Bankman-Fried and warns against a punishment that is too harsh, which would abuse him even if he could theoretically commit fraud again.
Sentencing Date
Sam Bankman-Fried is scheduled to be sentenced on March 28, and the judge's decision will be a pivotal moment not only for him, but also for his family.
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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

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Alex Mashinsky, the former CEO of Celsius, has agreed to relinquish all claims to the assets of the bankrupt crypto lender, facilitating further distributions to creditors. This agreement, submitted to the U.S. Bankruptcy Court for the Southern District of New York, bars Mashinsky and three associated entities from receiving any bankruptcy proceeds. All claims made by Mashinsky will be withdrawn and will not receive any distribution under the Chapter 11 plan. Consequently, he and his related entities will be permanently excluded from any recovery in the Celsius bankruptcy, allowing the reserved assets to be redistributed to other creditors. The court will maintain oversight of the distribution process while Mashinsky serves a 12-year prison sentence for defrauding customers and manipulating the CEL token's price. Celsius filed for Chapter 11 in July 2022 due to a liquidity crisis and has since transitioned to a recovery-focused entity, distributing over $2.5 billion to around 251,000 creditors by August 2024.