South Korea Seizes $47M Worth of Crypto for Back Taxes: Report

Officials called it the largest "cryptocurrency seizure for back taxes in Korean history."

Jun 23, 2021 at 10:13 a.m. UTC
Updated Sep 14, 2021 at 1:15 p.m. UTC

South Korean officials seized more than 53 billion won (US$47 million) in crypto from 12,000 people accused of tax evasion, the Financial Times reported.

  • The seizures are part of a months-long probe, The FT said Wednesday, citing the government for Gyeonggi province that encompasses the greater Seoul area.
  • Officials called it the largest "cryptocurrency seizure for back taxes in Korean history."
  • Local exchanges that did not collect resident registration numbers of account holders were used to conceal assets, according to the Gyeonggi government.
  • Investigators instead used mobile phone numbers to track down the alleged tax evaders. They included a "renowned home-shopping channel show host" who owed over $17,000 in tax and held $440,000 worth of crypto.
  • The seizure forms part of a broader crackdown on the crypto industry in South Korea in a bid by the country to tackle fraud and money laundering.
  • Crypto exchanges have until September to register with the financial regulator as virtual-asset service providers so the legality of their operations can be determined.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
A16z Addresses Downturn in Inaugural State of Crypto Report

The inaugural report discussed Web 3 trends and why Ethereum remains the dominant blockchain.

The inaugural report discussed Web 3 trends and why Ethereum remains the dominant blockchain.

2
Citi Says Fallout From Terra Collapse Unlikely to Hit Wider Financial System

Recent weakness in bitcoin and equities looks contemporaneous and doesn’t show any lag or lead effect, the bank’s analysts said.

Recent weakness in bitcoin and equities looks contemporaneous and doesn’t show any lag or lead effect, the bank’s analysts said.

3
Coinbase Pares Back Hiring Plans Amid Weak Earnings, Poor Market Condition

The exchange previously planned to hire as many as 2,000 employees earlier this year.

The exchange previously planned to hire as many as 2,000 employees earlier this year.

4
Bitcoin Mining Appears to Have Survived Ban in China

From September 2021 to January this year, China's contribution to the bitcoin mining network was second only to that of the U.S.

From September 2021 to January this year, China's contribution to the bitcoin mining network was second only to that of the U.S.