South Korean Tax Authority's Mistake Leads to Major Crypto Loss
South Korea’s National Tax Service accidentally exposed mnemonic phrases in a press release, leading to the theft of crypto assets worth $4.8 million. The incident originated from a routine announcement regarding tax audits, where a photo showed unrestrained Ledger wallet recovery phrases.
Details Highlight Security Gaps
Blockchain expert Jaewoo Cho revealed that approximately 4 million PRTG tokens, valued at around $4.8 million, were completely drained from the wallet shortly after the mnemonic phrase was exposed. The attacker first deposited a small amount of ETH to cover transaction fees and then proceeded to transfer all tokens in three separate transactions.
Experts Urge Stronger Information Security Measures
This incident highlights a serious oversight in how sensitive data is handled by public institutions. Experts recommend rigorous review processes before releasing any materials that may contain confidential technical information to prevent future occurrences.
- Public bodies should enhance cybersecurity training
- Sensitive visuals must undergo redaction before publishing
- Crypto users should remain vigilant about personal security