Just one picture but damaged in millions 🚨

The National Tax Service (NTS) became a point of criticism for cybersecurity in the wake of a major crash by publishing press release images that accidentally revealed Seed Phrase or the Krypto wallet recovery code, resulting in millions of dollars worth of digital assets being transferred out within a short time.

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The incident occurred after NTS launched an operation to investigate 124 suspected tax evaders and was able to confiscate digital assets from offenders worth about 8,100 million won, or about 174 million baht. These crypto assets were stored in Hardware Wallet.

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To show the success of the operation, the agency published a press release with illustrations of the seized medium, flash drives, cash, and documents, of course, including the paper on which the Seed Phrase of the Krypto wallet was written.

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For those who do not play Krypto, they may be confused about what Seed Phrase is. If it is simple to explain, Seed Phrase is a set of words used as a code to recover a Krypto wallet. It is usually used in case the Hardware Wallet device is damaged, lost, or needs to be moved to a new device. Users can take these word combinations to recover the wallet and access all coins.

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So Seed Phrase is considered an important secret to preserve, because if someone else has a set of words, they can recover their wallet and transfer all coins immediately.

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And in this case, when the press release was published on the Internet, an anonymous person used the Seed Phrase that appeared in the image to recover the wallet before transferring 4 million tokens of Pre-Retogeum (PRTG) coins from the bag shortly after the news was published.

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According to blockchain analyst Cho Jae-woo, the perpetrator should have a good understanding of the system, starting with sending small amounts of Ethereum coins into the pocket for transaction fees before gradually transferring all tokens into multiple transactions.

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This incident has therefore become an example of a fundamental security mistake that should not happen to government agencies, especially in an age when digital assets are highly valued and constantly targeted by cybercrime.

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Source: HKEPC

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