South Korea to Investigate Photo Leak of Mnemonic Phrase Causing $4.8 Million Cryptocurrency Loss for Tax Authority

Odaily News: The South Korean National Tax Service (NTS) inadvertently caused the theft of $4.8 million worth of cryptocurrency during a seizure operation by publicly displaying original photos containing the hardware wallet's mnemonic phrase. The NTS has apologized, stating it was unaware the provided seizure scene photos contained sensitive information. The NTS has now requested police intervention to recover the assets and plans a comprehensive review of its security systems and virtual asset management protocols. South Korea's Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, posted on X that the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) will investigate the leak and strengthen oversight of digital asset management by public institutions.