The NTS announcement detailed the seizure of assets worth 8.1 billion won, or about $5.6 million, from 124 high-value tax delinquents. Among the confiscated property were hardware wallets recovered from a taxpayer’s residence. A photograph included in the release showed a Ledger device next to a handwritten 12- or 24-word mnemonic phrase. The phrase was fully visible and not blurred.
Roughly 20 hours after the transfers, onchain records show the full 4 million PRTG tokens were returned to the original wallet. While the immediate financial loss was mitigated, the wallet’s recovery phrase remains compromised, meaning any continued use would require migration to a newly secured address.
FAQ What did South Korea’s tax service disclose?It published an unredacted wallet recovery phrase in a Feb. 26 press release. How much crypto was moved?About 4 million PRTG tokens, nominally valued near $4.8 million. Were the tokens permanently lost?No, onchain records show they were returned roughly 20 hours later. Why is this significant?It highlights security gaps in government handling of seized digital assets.
