South Korean Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, has ordered a review of state custody practices following a "handling failure" involving seized digital assets.
South Korea Finance Minister Pledges Review After Seized Crypto Wallet Leak
2 March 2026 - 15:56 CET
By Sandmark staff
The National Tax Service (NTS) inadvertently published a press release containing an unredacted wallet recovery phrase on 26 Feb, leading to the unauthorized transfer of 4mn PRTG tokens, which are native to the Proton blockchain. The minister stated that oversight of confiscated crypto will be strengthened to prevent a recurrence.
This follows reports by Korea JoongAng Daily that the NTS admitted the error and referred the matter to the police. The incident highlights operational risks within the state’s handling of assets, especially as exchange-held Bitcoin (BTC) is subject to direct seizure. South Korea is also targeting fast-track account freezes for manipulators, placing further scrutiny on how these seized assets are secured and managed across the various agencies involved in tax enforcement.
