South Korea to investigate cryptocurrency photo leak and seed phrase incident causing $4.8 million in tax authority losses

Odaily Planet Daily reports that the Korean National Tax Service’s seizure operation resulted in the theft of $4.8 million worth of cryptocurrency after they publicly displayed original photos containing hardware wallet seed phrases. The Korean National Tax Service apologized and stated that they failed to realize the sensitive information when providing photos of the seizure scene. They have now requested police intervention to recover the assets and plan to conduct a comprehensive review of security systems and virtual asset management manuals. Korean Vice Prime Minister and Minister of Strategy and Finance Koo Yun-cheol posted on X platform that the Financial Services Commission and the Financial Supervisory Service will investigate the leak and strengthen regulation of digital assets managed by public institutions.

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