In a shocking turn of events, South Korea's National Tax Service (NTS) has found itself at the center of a cryptocurrency heist following a significant blunder in a recent press release. According to the official information, the agency's attempt to showcase its efforts against tax evasion inadvertently exposed sensitive information that led to the theft of millions in digital assets.
NTS Press Release Highlights Tax Evasion Crackdown
Last Thursday, the NTS published a press release aimed at highlighting its crackdown on tax evaders. However, the release included a photograph of a Ledger hardware wallet, which contained a handwritten sheet with the wallet's complete mnemonic phrase. This critical oversight allowed anyone who accessed the image to gain full control over the wallet's funds.
Significant Financial Losses Due to Oversight
As a result of this error, approximately 4 million PRTG tokens, valued at around $48 million, were stolen before the NTS could rectify the situation. Blockchain researchers have since confirmed the theft, although they noted that the actual financial impact might be less severe than initially feared, given the challenges associated with converting PRTG tokens into cash.
Concerns Over Cybersecurity and Protocols
To date, the NTS has not issued a public statement addressing the incident, leaving many to question the agency's protocols for handling sensitive information. This incident raises significant concerns about cybersecurity and the potential vulnerabilities within government agencies managing digital assets.
In light of recent events involving South Korea's National Tax Service and a significant cryptocurrency theft, UK security official Matt Western has proposed a temporary freeze on crypto donations to political parties to prevent foreign interference. For more details, see read more.
