South Korea NTS Seed Phrase Leak: 4.8M$ PRTG Stolen

South Korea NTS’s Crypto Wallet Security Blunder

South Korea’s National Tax Service (NTS) accidentally exposed a crypto wallet’s seed phrase in an official press release announcing raids on tax evaders. This error led to the theft of 4 million PRTG tokens (worth approximately 4.8 million dollars) from an Ether (ETH) address. According to local media reports from sources like Naver and Chosun, the bulletin featured a clear image containing a Ledger cold wallet and the full mnemonic phrase. Blockchain researchers identified the address linked to the seed phrase, and on-chain data confirmed the transfer of 4 million PRTG to another wallet.

South Korea’s National Tax Service reveals seed phrase. Source: Naver

Hansung University Blockchain Research Center’s Assistant Professor Jaewoo Cho shared his analysis on X, confirming the loss and stating that other exposed mnemonics did not cause issues, with the damage remaining limited. The incident brought crypto storage issues in South Korea to the forefront; in a separate case, 22 Bitcoin (BTC) disappeared from a police safe, and Bithumb exchange’s 620.000 BTC error incentive is under investigation.

BTC Market and Recent Developments

This security scandal echoed in the BTC futures market, as BTC PERP rose %8,40 from the 62.401 dollar low, forming a weekly positive candle. GD Culture Group (GDC) plans to sell from its 7.500 BTC reserve to finance share buybacks. The UAE’s second-largest bank, with a 272 billion dollar balance sheet, is signaling crypto integration.