South Korea’s finance minister, Koo Yun-cheol, announced an urgent review of the management and custody of seized cryptocurrencies following a leak of sensitive information related to confiscated assets. This decision comes in response to a National Tax Service incident that inadvertently revealed the recovery phrase for a seized crypto wallet, leading to the unauthorized transfer of approximately 4 million PRTG tokens. Koo stated that the government would collaborate with agencies like the Financial Services Commission to inspect the status of digital assets held by authorities and implement stronger security measures to prevent future occurrences. This incident has sparked increased scrutiny on South Korean authorities, particularly after a series of custody failures involving missing or drained seized cryptocurrencies, prompting nationwide audits of government holdings.
South Korea Ministry of Finance reviews seized crypto custody after recovery phrase leak
