The Korean National Tax Service (NTS) has confirmed plans to review potential custodial institutions to manage seized crypto assets. This move follows an incident on February 26 involving the exposure of a public wallet recovery phrase. Images in the official press release revealed a hardware wallet device and a handwritten recovery phrase note, which disclosed access information for the assets.
An NTS official stated, “We are examining various options to strengthen asset custody management.” The official added that the current management responsibilities for crypto assets are shared among multiple departments, but the agency is preparing to establish a centralized management system.
To this end, the NTS has formed a dedicated task force responsible for assessing and drafting revised management guidelines, which will clarify the standards for asset storage and transfer approvals. After completing a compliance review, the relevant department will select a service provider from the candidates.
The task force will focus on optimizing the digital asset management system, aiming to improve the internal manual regarding asset seizure, storage, and liquidation processes. Additionally, the task force will conduct internal audits and implement employee training programs.
Officials noted that the leak of the recovery phrase prompted an immediate review of existing operational procedures. The task force has begun to outline the complete lifecycle of seized assets, with the goal of preventing any unauthorized asset transfers from occurring again.
The task force will also review the technical security measures of cold wallets and storage devices, planning to establish stricter physical and digital access controls. Relevant personnel will receive updated guidance on handling sensitive information.
Authorities confirmed that at least two similar incidents have occurred in recent months. Law enforcement has reported several other independent cases of lost or compromised seized assets. During this review process, the task force will coordinate with relevant agencies.