The National Tax Service (NTS) issued an apology after sensitive cryptocurrency information belonging to tax delinquents was exposed during a recent briefing. However, the leaked digital assets are inactive coins traded only on a specific exchange, suggesting actual damages will be limited.
In a statement released on January 1, the NTS said, "During our briefing on enforcement actions against tax delinquents on December 26, we inadvertently provided original photographs containing sensitive cryptocurrency information to the media in an attempt to deliver more vivid information to the public, resulting in the leak of delinquents' cryptocurrency data." The agency added, "There is no excuse—this is entirely the NTS's fault."
The NTS had distributed a press release announcing the seizure of four cold wallet USB devices containing a delinquent's cryptocurrency. The agency mistakenly exposed the "mnemonic code," which serves as a master key to access the wallets. While the initial press release contained photos where the code was not identifiable, a staff member later provided original images to reporters without recognizing they contained sensitive information. Shortly afterward, allegations emerged that cryptocurrency in the exposed wallets had been stolen.
"Upon confirming that coins were transferred out of the delinquent's wallet, we immediately traced the outflow using our cryptocurrency tracking program and requested a police investigation," the NTS said. "We are making every effort to recover the stolen assets."
The agency pledged to conduct an external review of its overall security system and strengthen internal controls, including pre-release screening to prevent sensitive information leaks. It also committed to overhauling procedures for seizing, storing, and selling cryptocurrency, while enhancing security training for staff.
The leaked cryptocurrency is reportedly an inactive coin traded only on the MEXC exchange with limited trading volume. Once the stolen coins are deposited on an exchange, the account would be frozen and transactions blocked through industry blacklists. While some analysts estimated the leaked assets' value at 6.9 billion won, others argue the actual cashable amount would be only a few thousand dollars given the limited liquidity.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol posted on social media platform X that "the government will inspect the status and management of digital assets held by government and public institutions through seizure from delinquents, in coordination with the Financial Services Commission and Financial Supervisory Service."
Koo added that the government would "promptly establish and implement measures to prevent recurrence, including strengthening digital asset security management."
The government also noted it does not hold any digital assets beyond those obtained through law enforcement actions such as seizures.
Police began a preliminary investigation immediately after receiving the NTS's request on December 27, analyzing the flow of the leaked cryptocurrency to track down the perpetrators.