Police Mistake Lets Bad Guys Grab Millions in Crypto

The South Korean National Tax Service announced it had seized more than $5 million in cryptocurrency from a group of wealthy tax evaders. In an attempt to make the story eye‑catching, officials posted pictures that included a handwritten recovery phrase next to a Ledger cold wallet. The phrase is the master key to move all the coins out of that device, and it was clearly visible in the images. A thief quickly spotted the mistake, deposited a small amount of ETH to cover transaction fees, and transferred about 4 million PRTG tokens—worth roughly $4. 8 million—in three separate moves.The press release was taken down after the mistake became public, but local media and tech sites had already shared screenshots. A blockchain analyst said the thief could be anyone who saw the images, and there is no clear suspect. The National Tax Service apologized for the lapse and said it was launching a police investigation to recover the stolen funds. They also warned that converting such a large amount of crypto into cash could be difficult under current market conditions, so the thief might keep the coins hidden instead of selling them on regulated exchanges. Experts say the error was avoidable. The original owner had followed good practice by writing the recovery phrase on paper and keeping it offline, but the police failed to check for that key before publishing. The mistake could cost the national treasury billions of won, and it highlights a pattern: police in South Korea have previously lost seized Bitcoin in similar incidents. The Tax Service claims it is tightening internal controls and training to prevent future leaks.