Oops: South Korean cops lost $5M in seized crypto after leaking wallet password
Summary
Ars Technica reports that South Korea’s National Tax Service publicly shared images showing a handwritten mnemonic recovery phrase next to a Ledger cold wallet, allowing a thief to potentially move seized crypto. Blockchain analysis suggests the attacker moved 4 million PRTG tokens after funding the wallet with ETH, prompting an investigation and pledges to tighten internal controls. The incident highlights the critical need for redaction and secure handling of crypto custody data in asset seizures.