![[Breaking] Police launch investigation into National Tax Service '6.9 billion won seized cryptocurrency' theft case - Seoul Economic Daily Society News from South Korea](/_next/image?url=https%3A%2F%2Fwimg.sedaily.com%2Fnews%2Fcms%2F2026%2F02%2F28%2Fnews-p.v1.20260228.353c6338587c422ab5233e5b47e4bea6_P1.jpg&w=3840&q=75 "Police Launch Probe Into $4.8M Crypto Theft From Tax Agency")
Police have launched a full-scale investigation into the theft of seized cryptocurrency assets resulting from a National Tax Service error.
The Cyber Terror Response Division of the Korean National Police Agency announced on the 28th that it had initiated a preliminary investigation following a referral from the National Tax Service the previous day.
On the 26th of this month, the National Tax Service inadvertently exposed the mnemonic recovery phrase—a password used to restore cold wallets not connected to the internet—while promoting its delinquent tax collection results in a press release.
The mnemonic serves as a master key for recovering lost wallets. Shortly after the exposure, allegations emerged on online communities that approximately $4.8 million (about 6.9 billion won) worth of cryptocurrency had been stolen.
The National Tax Service recalled the press release, but the mnemonic information had already spread.
"Given the gravity of the matter, we initiated our preliminary investigation immediately upon receipt and will proceed with the investigation swiftly," police said.