The National Tax Service disclosed a mnemonic code in a press release, sparking reports of an attempted crypto theft and prompting police to verify the facts. The incident highlights questions about how cryptocurrency assets are managed by authorities and underscores the need for clearer regulatory guidance on custody and seizure processes. In this case, 4,000,000 PRTG tokens were seized from a delinquent taxpayer and later circulated, valued at KRW 6.9 billion.
Investigators traced movements of the tokens after the release, noting that between 7:43 PM and 8:13 PM on the 26th, the entire 4 million tokens were moved to a single wallet, with a further transfer to another wallet at around 12:06 PM on the 27th. The case mirrors a recent crypto theft involving mnemonic code mismanagement at the Gangnam Police Station, prompting the police to roll out a nationwide plan to improve asset seizure custody. Officials say this year will see the entrustment of seized cryptocurrencies to professional custodians and the establishment of formal custody rules for digital assets.
Police reiterate that custody responsibilities will be clearly divided, with two individuals designated as evidence custodian and investigative officer, and recovery phrases (mnemonic codes) and passwords split by role. A monthly audit of cryptocurrency addresses and balances is planned to ensure proper seizure, storage, and transfer procedures, in an effort to prevent recurrence.
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