South Korea Reviews Crypto Custody Provider After Security Breach

South Korea's National Tax Service is evaluating a private custody provider for seized cryptocurrencies following a security breach earlier this year. According to NS3.AI, the incident involved a leaked seed phrase in February, resulting in an unauthorized transfer of approximately $4.8 million in tokens. The agency is currently drafting criteria for selecting a provider and plans to finalize the choice by the first half of 2026. This review comes in the wake of another custody failure involving 22 BTC and a cross-agency investigation into the management of seized digital assets.