South Korean National Tax Service Seeks Private Custody Service Providers Following Seed Phrase Leak Incident

DeepFlowTech · 2026-03-20T10:54:18+00:00

South Korea's National Tax Service is facing a security incident due to the leakage of cryptocurrency asset recovery phrases in February and is now seeking private custodial service providers to address asset custody issues, with plans to select qualified companies in the first half of 2026.

DeepFlowTech

2026-03-20 10:54:18

Abstract generation in progress

Deep Tide TechFlow News, March 20 — According to Cointelegraph, South Korea’s National Tax Service (NTS) is seeking private custodial service providers for confiscated crypto assets. This move follows a security incident in February this year, when assets were stolen after an official press release accidentally leaked wallet seed phrases.

On February 26, the NTS accidentally published a photo of a Ledger cold wallet and its seed phrase in an official press release. The image was unredacted, leading to the unauthorized transfer of approximately $4.8 million worth of confiscated crypto assets.

According to ZDNet Korea, the NTS is developing criteria for selecting custodial service providers and plans to complete the selection process by the first half of 2026. Evaluation factors include security requirements, organizational size, and whether the candidates hold insurance qualifications under South Korea’s Virtual Asset User Protection Act.

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