South Korea launches urgent audit of seized crypto after handling lapses

South Korea’s government has ordered an urgent audit of seized digital assets after a series of high‑profile mishaps raised concerns about how state agencies handle crypto holdings, officials said. Deputy Prime Minister and Finance Minister Goo Yun‑cheol directed a full review of seized crypto management as authorities seek to tighten controls while providing few additional details ^[1][3].

The review follows a recent digital asset information leak tied to the National Tax Service and recalls earlier custody failures, including reports of 22 lost bitcoins and a large exchange error that authorities said affected billions in assets, prompting scrutiny of existing procedures ^[2][1][3].

Finance Ministry officials have pledged reforms to strengthen how government agencies manage seized cryptocurrency and address security lapses, but have not published a detailed timeline or specific remedial measures yet ^[4][2].

The government audit intends to assess custody practices and reinforce safeguards around seized digital assets; authorities say the review is urgent but have released limited public information on next steps ^[1][2].