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South Korea's National Tax Service accidentally published a cryptocurrency wallet seed phrase in a public document, leading to the immediate theft of $4.8 million in seized tokens. The incident highlights critical vulnerabilities in institutional crypto custody practices and raises concerns about the security of government-held digital assets. The breach could erode investor confidence in state-backed crypto management and trigger regulatory scrutiny. Market participants are now wary of similar risks in custodial services, potentially impacting broader crypto adoption and institutional participation.
