Crypto Security Crisis and Audit in South Korea
South Korea’s Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol announced that they will launch a comprehensive audit covering the procedures for managing seized digital assets by the government and public institutions following the accidental publication of the full recovery phrase (seed phrase) of a hardware wallet in a photo from the National Tax Service’s (NTS) press release. Approximately 4 million Pre-Retogeum (PRTG) tokens worth 6 billion won (approximately 4.8 million dollars) were lost due to the phrase in the image shared by NTS on Thursday.
Yun-cheol stated in a post on the X platform that, together with the Financial Services Commission and the Financial Supervisory Service, they will examine the status of all seized digital assets from tax evaders and rapidly strengthen security checks. State officials emphasized that they only possess crypto assets obtained through legal transactions. This audit covers previous cases such as the NTS error as well as the loss of 22 BTC detailed analysis left by Seoul Gangnam police in a third-party custodian during a 2021 hack incident, and aims to address weaknesses in digital asset controls in the public sector.
South Korean authorities to launch cross-agency probe. Source: Yuncheol Koo
BTC Market Reaction and Latest News
This development combined with geopolitical tensions in the BTC futures market. After the US-Iran crisis, BTC rose 0.7% at the opening of the US futures market, while echoes of closed exchanges like Mt. Gox continue. The South Korean audit may trigger BTC volatility by increasing global regulation concerns.
BTC Technical Outlook (02.03.2026)
- Price: $65,930 | 24h Change: -1.94%
- RSI: 39.41 (Near Oversold)
- Trend: Downtrend | Supertrend: Bearish
- Supports: S1 $64,308 (Strong, 75%) | S2 $60,000
- Resistances: R1 $69,003 (Strong, 70%) | R2 $74,586
- EMA 20: $68,177
In the short term, S1 support is critical; if broken, $60K could be tested.
Source: https://en.coinotag.com/south-korea-crypto-regulation-btc-reaction
