South Korea’s tax agency is currently looking into crypto investment company Hashed, according to reports by local media. The crypto company is allegedly under investigation by the National Tax Service (NTS) in South Korea.
The 4th Bureau of Investigation from the Seoul Regional Tax Office that is handling this investigation, is famous for conducting investigations into tax evasion claims and slush fundraising. A slush fund is described as a pool of funds that are raised via undisclosed means and put aside for undisclosed purposes.
On December 7, local media reported that the exact nature and purpose of the investigation is not clear. One official from the regional tax office said that although they had no means of confirming the exact nature of the investigation:
“Intense investigations on small businesses without any prior notice are not uncommonly related to slush fundraising or tax evasion on the part of the company’s CEO.”
This investigation started early last month and is expected to conclude by the end of February 2022, several days before the South Korean presidential election that happens on March 9, 2022. Hashed is one of the highest-profile cryptocurrency investment companies in South Korea. It was launched in 2017 by Ethan Kyuntae Kim, Simon Seokoon Kim, and Ryan Sungho Kim. All of them are technically listed as heads of the company or CEO.Buy Crypto Now
Hashed Invests In Web3 Technology
On December 1, Hashed launched its $200 million Venture Fund II, a year after it launched a $120 million Venture Fund I. The latest fund will focus mainly on Web3 growth opportunities. Hashed’s investment portfolio includes more than 80 firms including several cryptocurrency networks like Cosmos and Klaytn, DeFi protocols like Synthetix and MakerDAO, and various NFT brands like Axie Infinity and The Sandbox.
The South Korean government and the NTS have been largely monitoring the digital assets and crypto sector throughout this year.
Nonetheless, some good news came up after a year-long battle among the legislators. The government passed a bill on December 3 that postpones levying tax on crypto trading activities for a year. When this tax law comes into effect, in January 2023 instead of 2022, traders will pay 20% of all the gains made over $2,100.