Particle.news
Download on the App Store

South Korea’s Tax Agency To Outsource Seized Crypto Custody After $4.8M Leak

A dedicated task force will vet insured institutional custodians under stricter security criteria, with selection targeted for the first half of 2026.

Overview

  • An unredacted Feb. 26 press release exposed a Ledger wallet’s recovery phrase, leading to unauthorized transfers of roughly $4.8 million.
  • The National Tax Service is reviewing private custody providers based on security standards, company size, and insurance under the Virtual Asset User Protection Act.
  • Planned requirements include advanced cybersecurity, multi-signature controls, secure hardware storage, operational transparency, audits, and disaster recovery capabilities.
  • A new digital-asset task force is updating manuals for seizure, storage, and liquidation, running internal assessments and training, and preparing a centralized crypto unit.
  • Authorities cite earlier mishaps, including a 22 BTC loss by police, with cross-agency probes and new police guidelines now in place to standardize handling of seized crypto.