South Korea's NTS to overhaul crypto seizure system after $4.4M theft

South Korea's National Tax Service (NTS) is completely overhauling its system for seizing, holding, and selling virtual assets, Field News reported. The NTS announced today that it is upgrading its virtual asset management system, focusing on three core principles: stability, connectivity, and expertise. According to the agency, the move aims to address existing limitations, including inadequate measures for handling private wallets, a reliance on manual seizure processes based on official documents sent to exchanges, and a lack of on-site expertise. The overhaul follows a major security incident in February, when the NTS lost approximately 6 billion won ($4.4 million) in seized crypto. The assets were stolen after the agency inadvertently exposed sensitive information in a press release publicizing a seizure from a high-value tax delinquent.