In a stunning operational slip, South Koreaâs National Tax Service reportedly exposed a crypto wallet seed phrase in an official press release â and the market reacted fast.
The agency had proudly announced the seizure of assets worth 8.1 billion won (around $5.6 million) from 124 major tax delinquents. Among the confiscated items were four USB drives containing digital assets. Unfortunately, an accompanying photo also showed a sheet of paper with the walletâs seed phrase â completely unredacted.
From Press Release to Wallet Drain
Shortly after the image went public, someone deposited a small amount of ETH into the wallet â likely to cover gas fees â and proceeded to transfer out 4 million PRTG tokens, valued at approximately $4.8 million. The funds were moved to an unknown address across three separate transactions.
The silver lining? PRTG is a relatively small-cap token with limited liquidity. Offloading that size position into real cash without triggering massive slippage could prove extremely difficult. Still, the damage from a security standpoint is undeniable.
A Pattern of Costly Mistakes?
This isnât the first crypto-related mishap to come out of South Korea this month. Earlier, an employee at the exchange Bithumb reportedly made an airdrop error â mistakenly distributing 2,000 BTC instead of 2,000 won (roughly $1.5).
Now, publishing a visible seed phrase in a government press photo? Thatâs a mistake straight out of Crypto Security 101.
The Bigger Lesson
Crypto doesnât forgive operational negligence. A seed phrase is the master key. Once exposed, control of the wallet is effectively lost â no matter who originally âownsâ it.
This incident is yet another reminder: whether youâre a retail holder, an exchange, or a government agency, basic security hygiene isnât optional in Web3.
In crypto, one screenshot can cost millions.

