Deputy Prime Minister Koo Yun-cheol ordered an inter-agency review of seized crypto wallets after the National Tax Service exposed a seed phrase in a press release.
South Korea’s Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, announced a cross-agency sweep of how the government and public institutions handle seized digital assets after the National Tax Service (NTS) accidentally leaked a wallet seed phrase in a press release photo on Thursday.
Officials published an image of a hardware wallet showing the full recovery phrase. Authorities lost roughly 4 million Pre-Retogeum (PRTG) tokens worth about 6 billion won ($4.8 million) from a confiscated wallet as a result.
In a post on X, Yun-cheol said that the government, alongside the Financial Services Commission and Financial Supervisory Service, would review the status and management of all digital assets seized from delinquent taxpayers and “promptly” strengthen security controls.
He also stressed that the state does not hold crypto beyond assets acquired through law enforcement actions.
National Tax Service leak exposes Korea’s seized asset safeguards
The announcement follows the incident on Thursday in which the NTS embedded the full mnemonic recovery phrase for a seized hardware wallet in an official press release photo celebrating a tax evasion crackdown, effectively handing control of the wallet to anyone who viewed the image. The blunder allowed unknown actors to drain the 4 million PRTG tokens within hours.
The NTS’s error was not an isolated lapse. South Korean authorities have also faced scrutiny over a separate custody failure in which Seoul’s Gangnam police allegedly lost 22 BTC seized in a 2021 hacking case after leaving the funds with a third-party custodian.
The government’s inspection is intended to “prevent recurrence” of such incidents that have exposed broader weaknesses in South Korea’s public sector digital asset controls, as officials move to tighten the country’s virtual asset oversight framework.
Context
Current positioning around Bitcoin News remains sensitive to primary-source updates, policy interpretation, and execution risk across major venues.
What To Watch
Key confirmation signals include sustained spot demand, funding stability, and whether price can hold reclaimed levels after headline-driven volatility.
If momentum weakens, traders will likely prioritize downside liquidity zones and risk-control positioning before adding new directional exposure.
Related: More from Bitcoin News | Bitcoin Futures Retreat Amid Iran Conflict Escalation | Bitcoin Drops Below $66K Amidst Escalating Iran Conflict
