South Korea Loses Seized Crypto Due to Password Exposure

South Korea’s National Tax Service seized cryptocurrency assets worth approximately 8.1 billion won ($5.6 million) from 124 high-value tax evaders during recent enforcement actions. A portion of the confiscated crypto was later lost after officials inadvertently exposed the password required to access the holdings. The incident occurred in 2026, though the exact date of the password exposure is not specified. The loss resulted from human error in handling sensitive credentials, leading to unauthorized access and dissipation of the funds. No technical details about the storage method or the nature of the password exposure were provided.