South Korean Police Blunder: Posted Crypto Wallet Recovery Phrase Leads to $5M Theft

South Korean police inadvertently caused the theft of approximately $5 million in seized cryptocurrency after posting a press release that included sensitive information. The press release, which boasted about seizing $5.6 million in crypto from 124 wealthy tax evaders, contained images that revealed a complete mnemonic recovery phrase for a Ledger cold wallet. The handwritten note, clearly legible in the photo, acted as a master key, allowing anyone to transfer the assets without needing a PIN or other permissions. Although the press release was later removed, it had already been captured and disseminated by local media and tech publications. This security lapse highlights a significant failure in handling digital evidence and underscores the risks of improper operational security by law enforcement agencies dealing with cryptocurrency seizures.