South Korea’s tax agency is seeking a private custody provider after a security lapse exposed private keys and enabled unauthorized transfers of seized crypto assets.
South Korea’s National Tax Service is moving to appoint a private custodian to manage seized crypto assets after a security failure exposed private keys, allowing unauthorized entities to transfer some holdings. The plan follows earlier reports that two thefts were linked to an exposed mnemonic phrase on February 26. The agency had already said it would choose a private manager in the first half of the year and formed a task force on March 11 to revise procedures for seizing and selling digital assets, reflecting a broader effort to tighten asset-handling controls.