National Tax Agency Virtual Asset Seizure, Risk of Theft Due to Security Breach

Questions have arisen over the virtual assets seized by the National Tax Service being stolen, and the police are currently verifying the facts. This incident has attracted attention because the National Tax Service leaked important security information during the virtual asset seizure process.

On the 1st, the police announced that they received a report claiming that virtual assets had been stolen. The informant said that after learning that the National Tax Service’s security key “mnemonic phrase” was publicly disclosed, they attempted to steal the assets out of curiosity and have since returned the related assets. A mnemonic phrase is an important security password used to recover or retrieve lost virtual assets.

The incident began when the National Tax Service seized an offline electronic wallet (cold wallet) containing virtual assets from a taxpayer on February 26 due to unpaid taxes. During the distribution of related information, the service inadvertently leaked the mnemonic phrase. This led to suspicions that the virtual assets might be at risk of exfiltration. After receiving an investigation request from the National Tax Service, the police are now looking into the matter.

Currently, the police are investigating the credibility of the informant’s statements and verifying whether any actual illegal activity occurred. If the claims are confirmed, it could spark discussions about the need for additional security measures in virtual asset recovery and protection methods.

This incident may serve as an opportunity to re-examine the importance of digital asset security and the necessity of strengthening security management systems in public institutions. Based on the ongoing investigation, virtual asset management and security systems may undergo significant reforms.

View Original
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

How OTC merchants step by step into the trap of "illegal business operation"

Author: Lawyer Shao Shiwei Profiting from buying and selling virtual currencies through price differences, but being prosecuted for receiving foreign exchange transfer funds—this article is based on a real case handled by Lawyer Shao, involving an OTC merchant accused of illegal business operations and concealing criminal proceeds through off-market USDT transactions. In this case, the involved party has long been engaged in buying and selling USDT to earn price differences. During a normal transaction, he unfortunately received RMB funds transferred by an underground bank upstream, illegally exchanging currency for others. Big data analysis confirmed that this fund was identified as foreign exchange transfer funds. The question then arises: Is simply earning from virtual currency price differences enough to be criminally liable for receiving foreign exchange transfer funds from illegal foreign exchange transactions upstream? More notably, there are differing opinions within the case-handling agency regarding whether to apply the crime of illegal business operations or the crime of concealing and disguising criminal proceeds. Lawyer Shao’s view is that such cases cannot be simply classified; the behavior must be assessed based on the individual's role in a layered manner.

PANews34m ago

XRP Could Face Securities Classification Under New U.S. Crypto Framework, Says Cardano’s Hoskinson

Charles Hoskinson argues that under the revised CLARITY Act, tokens like XRP would qualify as securities, igniting his feud with the XRP community. He called Ripple CEO Brad Garlinghouse out again, cautioning that having no laws is better than having a bad law. Cardano founder Charles Hoskin

CryptoNewsFlash48m ago

Bank failures, war conflicts: Iran's $7.8 billion cryptocurrency "shadow economy" becomes the focus again

As the US-Israel coalition escalates actions against Iran, the country's "shadow economy" has once again come into focus. Iran is using cheap electricity to mine Bitcoin, stabilizing its currency and bypassing sanctions. Mining hash rate accounts for 2%-5% of the global total and is expected to create a $7.8 billion ecosystem by 2025. The stablecoin USDT is also used to stabilize the rial exchange rate, which has depreciated by over 96%. Additionally, during protests, the public has accelerated their shift to Bitcoin to protect assets.

区块客1h ago

TRM Labs Reports $35B Lost to Crypto Scams Worldwide in 2025

TRM Labs reports a rise in global crypto fraud, reaching $35 billion in 2025, likely underestimating actual losses. Enhanced training and blockchain tools are essential for law enforcement to combat sophisticated fraud schemes effectively.

TheNewsCrypto1h ago

FATF: Peer-to-peer transfers of stablecoins pose a major money laundering risk; it is recommended that issuers introduce freezing and blacklisting mechanisms.

The latest FATF report indicates that P2P transfers of stablecoins have become a major source of money laundering risk in the crypto space, especially in unhosted wallet transactions where regulation is difficult. Approximately 84% of illegal crypto transactions involve stablecoins. FATF recommends strengthening regulation of stablecoin issuers and promoting anti-money laundering measures.

GateNews3h ago

Prince Group is laundering 10.7 billion NT dollars in Taiwan! Developing their own "OJBK Wallet" to connect with underground currency exchanges.

The Taipei District Prosecutors Office is investigating the Cambodia "Prince Group" money laundering case, involving illegal proceeds of up to 10.7 billion. Sixty-two people, including Chen Zhi, have been indicted. The group was found to be using USDT and their self-developed "OJBK Wallet" for cross-border money laundering. Chen Zhi directed the establishment of companies in multiple countries, disguising criminal proceeds through false transaction contracts, and purchasing luxury homes and high-end cars. The prosecution is seeking a maximum sentence of 13 years for him.

区块客4h ago
Comment
0/400
No comments