"As Bleeping Computer reports, the agency released photos of a Ledger hardware wallet for crypto storage on February 27 - but failed to redact a handwritten note visible in the shots that exposed the accompanying wallet's recovery or seed phrase. The phrase allows anybody to circumvent the need for the physical Ledger device and initiate transfers."
"Sure enough, it didn't take long for an anonymous opportunist to deplete the wallet, worth around $4.8 million at the time of the post - an embarrassing slip-up that directly undermined the cops' efforts to clamp down on tax evasion."
"According to local business newspaper Maeil, the anonymous thief withdrew four million Pre-Retogeum tokens, an obscure crypto token linked to energy trading, to their own wallet in three transactions after using a small amount of Ethereum to pay for the transaction."
South Korea's National Tax Service announced results from raids on 125 tax evaders, confiscating $5.6 million in cryptocurrency. However, the agency made a critical security error by releasing photos of a Ledger hardware wallet without redacting a handwritten recovery seed phrase visible in the images. This phrase allows anyone to access and transfer funds from the wallet without the physical device. An anonymous opportunist exploited this mistake and withdrew four million Pre-Retogeum tokens worth approximately $4.8 million. While converting these obscure tokens to fiat currency presents challenges due to limited exchange availability and low market cap, the incident significantly undermined the tax enforcement effort. The National Tax Service subsequently apologized for the security breach.
#cryptocurrency-security #tax-evasion-enforcement #operational-security-failure #digital-asset-theft
Read at Futurism
Unable to calculate read time
Collection
[
|
...
]