South Korea’s tax authority leak led to $4.8 million cryptocurrency theft
South Korea’s tax service accidentally published the seed phrase of a confiscated crypto wallet in an official press release, allowing hackers to withdraw $4.8 million within minutes. This incident highlights critical security vulnerabilities in the handling of seized digital assets by law enforcement agencies.
The report describes how the original keys to the wallet, including USB devices used for storing private keys, were lost or remained unsecured following confiscation. Once the seed phrase became public, attackers quickly transferred the stolen assets to their own accounts. This case underscores the urgent need for stricter cybersecurity protocols when managing seized cryptocurrencies.
This cautionary event may prompt authorities to review their confiscation and storage procedures and enforce stronger security measures to prevent such losses in the future.
