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The king's dungeon in the Elvenking's Halls, located in northern Mirkwood, was a part of the underground stronghold of King Thranduil. This dungeon was used to imprison those who posed a threat or were deemed suspicious by the Elvenking.
In The Hobbit, Thorin Oakenshield and his company of dwarves were captured by the elves and imprisoned in these dungeons. The cells were located in the lower levels of the halls, making escape difficult. However, Bilbo Baggins, using the power of his magic ring to become invisible, managed to free the dwarves by sneaking into the dungeon and unlocking their cells.
The dungeon was part of a larger network of passages and halls within the Elvenking's Halls, which also included the king's throne room, cellars, and treasure vaults. The entire complex was designed to be both a palace and a fortress, providing safety and security for the Woodland Realm.