South Korean Police Investigate Claim of Theft of Cryptocurrency Seized by National Tax Service
Seoul, March 1, 2026 — South Korean police authorities have launched an investigation following a report claiming that cryptocurrency assets seized by the National Tax Service (NTS) were stolen and later returned.
On February 26, the NTS publicized that it had confiscated offline cryptocurrency wallets—also known as cold wallets—belonging to a tax delinquent individual. However, the announcement inadvertently revealed sensitive information known as the “mnemonic code,” a master key used to restore access to digital assets. This exposure raised immediate concerns over the security of the seized cryptocurrency.
Shortly thereafter, on February 27, the NTS submitted a request to the police to probe potential unauthorized access or theft. The Cyber Terror Response Division of the National Police Agency began a preliminary investigation to ascertain the facts.
According to police sources on March 1, an individual submitted a report claiming responsibility for having accessed the seized cryptocurrency after seeing the mnemonic code posted online. The person alleged that the theft was attempted out of curiosity and that the assets were returned the following day.
Police officials confirmed that the individual is a South Korean national and that authorities are currently verifying the authenticity of the claim. Depending on the investigation’s findings, the police will determine whether formal charges or further action are warranted.
The mnemonic code’s accidental exposure in the official NTS press release has sparked significant debate on digital asset security protocols, especially regarding government-held cryptocurrency following seizures. Experts emphasize the critical importance of safeguarding such information, as mnemonic codes provide full access to the associated wallets.
This incident has also underscored the novel challenges faced by law enforcement and tax authorities in managing and securing crypto assets amid increasing adoption and regulatory scrutiny.
The National Tax Service has not issued further comment since the revelation but is cooperating with the police investigation.
As this situation develops, authorities and the public alike await a comprehensive assessment to prevent similar incidents in the future and to safeguard the integrity of cryptocurrency seizure processes.
Reporter: Jeon Hyun-jin, Kyunghyang Shinmun