TechFlow news: On March 20, according to Cointelegraph, the Korea National Tax Service (NTS) is seeking private custodial service providers for the custody of seized crypto assets. This move follows a security incident in February, when an official press release accidentally leaked the mnemonic phrase of a wallet, resulting in unauthorized transfers of the seized assets.
On February 26, the Korea National Tax Service inadvertently published, in an official press release, an unredacted image of a Ledger cold wallet along with its mnemonic phrase. As a result, approximately $4.8 million worth of seized crypto assets were transferred without authorization.
According to ZDNet Korea, the Korea National Tax Service is currently developing selection criteria for custodial service providers and plans to complete the selection process in the first half of 2026. Evaluation criteria include security requirements, institutional scale, and whether candidates hold insurance qualifications under Korea’s Virtual Asset User Protection Act.
