South Korea’s National Tax Service (NTS) acknowledged that it accidentally gave media photographs containing sensitive virtual-asset information. News outlets reported that the images showed a wallet recovery phrase and that 4 million Pre-Retogeum (PRTG) tokens were later transferred. Those tokens were theoretically valued at about $4.8 million at the time, but that figure is not a confirmed cash loss: reported trading liquidity was extremely limited.
How the wallet information was exposed
In a statement dated March 1, 2026, the NTS said the incident occurred on February 26, while it was briefing media about an on-site seizure involving a tax delinquent. The agency said it inadvertently supplied original photographs that contained sensitive virtual-asset information because it had not recognized what was visible. It accepted responsibility and apologized. NTS statement, March 1, 2026
News coverage identified the pictured device as a Ledger hardware wallet and reported that a handwritten mnemonic phrase—another term for a wallet recovery phrase or seed phrase—could be seen in the image. A recovery phrase can restore access to a wallet on another compatible device. That means control of the phrase can matter more than possession of the original hardware wallet. BleepingComputer, February 28, 2026
What was reportedly transferred
The Block reported that 4 million PRTG tokens were sent to an unidentified address after the disclosure. Its account of blockchain analysis says the sequence involved a small ETH transfer to cover transaction fees, followed by three transactions moving the PRTG. The NTS statement confirms that it detected a coin outflow, traced it using its crypto-tracking software, and requested a police investigation; it does not name the token, state the quantity, or describe the transaction sequence. The Block, February 27, 2026 NTS statement
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Why “$4.8 million stolen” needs a qualification
The Block put the 4 million PRTG tokens at about 6.4 billion won, or $4.8 million, using the token’s market price at the time. That is a theoretical market-price valuation, not proof that anyone sold the tokens for that amount or that the tax agency ultimately lost that sum. The Block also reported about $332 in PRTG 24-hour trading volume and a single exchange listing at the time of its report—a dated snapshot that points to very limited liquidity. The Block, February 27, 2026
Liquidity is the ability to sell an asset without sharply moving its price. A quoted price for a thinly traded token does not mean buyers are available for millions of dollars’ worth at that price. Seoul Economic Daily reported that authorities considered the tokens inactive and that actual losses might amount to only several thousand dollars. That, too, is a reported estimate rather than a final public accounting. Seoul Economic Daily, March 1, 2026
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The Block separately reported 8.1 billion won in digital assets seized across an operation involving 124 high-value and habitual tax delinquents. That operation-wide total is not the value of the wallet at issue in the disclosure. The Block, February 27, 2026
What the NTS said it would change
The NTS said it would commission an external review of its security systems, strengthen internal controls such as pre-publication screening for sensitive information, revise procedures for seizing, storing, and selling virtual assets, and improve staff security training. These are announced corrective measures; the statement does not establish that each change has since been completed. NTS statement, March 1, 2026
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A March 20 Cointelegraph report, citing ZDNet Korea, said the agency was considering a private custodian for seized cryptocurrency and aimed to select one in the first half of 2026. The reviewed reporting does not establish whether a provider was selected by that target date, so the plan should not be treated as a completed reform. Cointelegraph, March 20, 2026
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What remains unresolved
The cited accounts do not confirm whether any assets were recovered, whether police identified a suspect, or what the investigation ultimately found. Nor do they provide a final accounting of the financial loss. The NTS’s official statement confirms the exposure and an outflow, while the token amount, market valuation, and liquidity caveats come from news reporting.
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