President Nayib Bukele said the digital wallet used for transactions was not functioning during the first few hours.
It is the largest penalty ever imposed by the Financial Industry Regulatory Authority.
The U.S. dollar is still the currency of reference, but anyone who invests three Bitcoin in the country -- currently about $105,000 -- will be entitled to permanent residency.
The operation to recover the cryptocurrency from Russia-based hacker group Darkside reflects an increasingly aggressive approach to deal with such threats.
Bitcoin’s gains have been fueled by signs it is gaining acceptance among mainstream investors and companies, from Tesla and Mastercard to BNY Mellon.
Kelly Harper was arrested after journalists investigating a murder-for-hire site on the dark web reported her alleged cryptocurrency offer to Wisconsin authorities.
Investigators are looking into possible mysterious foreign bitcoin payments to key extremist figures, NBC reported.
Officials say Graham Clark, 17, masterminded the hack of accounts belonging to people like Barack Obama, Elon Musk, Joe Biden and Jeff Bezos.
Barack Obama, Jeff Bezos, Kanye West, Michael Bloomberg, Apple and Uber were also targeted in the massive cryptocurrency scheme.
Researchers at the Technical University of Munich and MIT found the virtual currency is responsible for the same amount of carbon dioxide emissions as a large Western city.