South Korea Tax Office Eyes Private Custody After Seized Crypto Loss

South Korea Tax Office Eyes Private Custody After Seized Crypto Loss – #CryptoUpdatesGNIT

South Korea’s National Tax Service (NTS) is moving to select a private custody provider for seized crypto assets after a February press release exposed a wallet recovery phrase and triggered the unauthorized transfer of confiscated tokens. On Feb. 26, the NTS accidentally exposed a crypto wallet seed phrase in an official press release, resulting in the unauthorized transfer of crypto tokens valued at about $4.8 million. The release included an …

South Korea’s Tax Agency Turns to Private Crypto Custodian After Security Failures

TL;DR: South Korea’s tax agency is seeking a private custodian for its seized cryptocurrencies following the leak of a seed phrase. The February 26 leak resulted in the unauthorized transfer of tokens valued at approximately $4.8 million from a government Ledger cold wallet. The government launched an interagency investigation after a parallel case emerged in which Gangnam police allegedly lost 22 seized BTC. South Korea’s National Tax Service …

South Korea's tax service to name custodian for seized crypto after national mishaps

South Korea’s National Tax Service (NTS) plans to hire professional private custodians to store the digital assets seized from criminal proceedings.  The decision to switch from self-custody to private custody is due to embarrassing mishaps on the part of the NTS and other national agencies that caused significant financial and reputational damage.  Why is South Korea changing its crypto storage policy? South Korea’s National Tax Service (NTS) h…

CASE STUDY | Why the South Korea Tax Agency is Seeking Private Custody of Seized Digital Assets

South Korea’s National Tax Service (NTS) is seeking a private crypto custody provider after a security lapse in which officials accidentally exposed a wallet seed phrase leading to the loss of millions in seized digital assets. The breach occurred in late February 2026 when the agency published a press release containing an image of a hardware wallet alongside an unredacted recovery phrase, effectively giving public access to the funds. Unknown …

South Korea NTS Seeks Custody Firm After Crypto Breach

TLDR South Korea’s National Tax Service began reviewing private custody providers after a security lapse exposed wallet recovery phrases. Unauthorized entities transferred about $4.8 million in seized crypto assets following the disclosure. The agency will evaluate candidates based on security systems, company size, and insurance coverage under the Virtual Asset User Protection Act. A dedicated task force now leads efforts to improve digital as…

South Korea’s National Tax Service Accelerates Private Crypt

South Korea’s tax authority reforms handling of confiscated cryptocurrencies after security failures. Private custodians will be selected based on security criteria, insurance, and operational reliability. Continue Reading:South Korea’s National Tax Service Accelerates Private Crypto Custody Shift A...