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South Korea's Tax Authority Apologizes After Accidental Cryptocurrency Seed Phrase Leak Leads to $4.8 Million Loss

Key Points
  • South Korea's tax authority accidentally leaked a cryptocurrency seed phrase in published images from a seizure operation.
  • Approximately $4.8 million in cryptocurrency was stolen from one of the seized wallets shortly after the leak.
  • The authority has apologized, updated its procedures, and contacted police to investigate the theft.

South Korea's tax authority has issued an apology after accidentally leaking a cryptocurrency seed phrase – a recovery code for a crypto wallet – in images published during a seizure operation against tax evaders. 8 million was emptied, representing the majority of the seized assets. 6 million) from 124 individuals.

The transactions are recorded on the blockchain, and police have been contacted to track those responsible. South Korea's tax authority stated that it has updated its procedures for handling cryptocurrency assets and will train staff to avoid similar mistakes in the future.

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