Cops Lose $5M in Seized Crypto After Leaking Wallet Password
South Korean police accidentally exposed a cold wallet's recovery phrase, allowing thieves to steal most of the $5.6 million in seized cryptocurrency. This major crypto heist highlights security risks.
South Korean police were left red-faced after a major security blunder led to the theft of $5 million in seized cryptocurrency. The incident began when the cops proudly announced the seizure of $5.6 million worth of digital assets from 124 tax evaders. However, their victory was short-lived as they soon realized they had mistakenly exposed the recovery phrase for the cold wallet holding the seized funds.
The police had posted a press release that included images of the seized Ledger hardware wallet and a handwritten note containing the complete mnemonic recovery phrase. This master key would allow anyone to access and transfer the assets out of the cold wallet without any additional permissions or security checks.
Source: Ars Technica
