Last month, the failure the Korean government pulled off was truly shocking. In a press release they published to publicize the seizure of assets from tax evaders, the confiscated wallet’s seed phrase was completely visible. They basically posted a handwritten image of the seed phrase as-is.

This is not a story you can laugh about, though. Within a few hours after the release, blockchain observers noticed that funds related to the recovery key were moving. It’s reported that roughly $5 million worth of digital assets were ultimately withdrawn. It’s on a scale that doesn’t seem like something a national agency could have messed up.

What this incident teaches is just how powerful seed phrases are. It’s only a sequence of 12 or 24 words, but if someone knows it, they can access your entire wallet. Whether it’s stored on a hardware wallet or managed by the government—none of that matters. A seed phrase = full ownership of those assets.

That’s why this lesson is extremely important for individual investors. Absolutely do not save your seed phrase in digital form. Don’t include it in photos, in cloud memo apps, or in press releases. This isn’t a joke—Korea’s government actually did it.

If you personally want to strengthen security, first use a hardware wallet. Generate the private key offline, and don’t let it touch any internet-connected device. Next, engrave the recovery word(s) onto a stainless steel plate and store it somewhere safe. Also consider protection against fire and water damage. And if you want to go even further, consider multi-signature settings or a secret-sharing method—so you don’t keep everything in a single location.

The deputy prime minister of Korea has reportedly already promised to prevent a recurrence. There has also been talk of introducing multi-signature wallets for assets held by the state. The aim is to prevent a situation where a single bureaucrat—or a single photo—could wipe out the entire amount.

The core of this incident is that, in the Web3 world, the line between “safety” and “theft” is truly razor-thin. Whether it’s the government or an individual, the principles of crypto assets don’t change. If you can’t protect the seed phrase, your assets will disappear. That’s all there is to it.