Law enforcement officials in South Korea have reportedly seized around 260 billion won ($183 million) in cryptocurrencies from local individuals and businesses in two years as they failed to comply with local tax laws.
Not long ago, the authorities targeted the notorious leader of Terraform Labs: Do Kwon. He was accused of giving away chips to family members as a way to evade taxes.
The latest crypto seizure in South Korea
According to a report by the national news agency Yonhap, South Korean authorities seized more than $183 million in digital currencies since the beginning of 2021. The seizure covered 17 cities, including the capital Seoul, and led individuals and companies, without forgetting the tax rules. .
The nation’s most populous province, Gyeonggi, saw the highest amount of cryptocurrency seized at over $37 million. The region’s largest cities, Seoul and Incheon, had about $12 million and $3.5 million in digital assets seized, respectively. Other major cities, including Daejeon, Chungnam and Jeonbuk, were also part of the officials’ operation.
On an individual level, law enforcement officers seized $8.5 million in crypto from a Seoul resident who did not meet domestic tax requirements. The person’s wallet consisted of 20 digital currencies, with Bitcoin (BTC) and Ripple (XRP) making up the majority of his deposit.
After the garnishment, the unidentified individual paid his back taxes and requested that they be transferred back to him.
Although the crypto tax rules in South Korea are still unclear, in 2020, local authorities began confiscating digital assets from individuals and companies that did not report their transactions to the relevant institutions.
“The law and policy ensure a stable investment environment for virtual currency, but fair fiscal principles must be applied to the tax borne by all citizens.” Deputy Kim Sang-hoon said about it.
Earlier this year, the South Korean government proposed postponing the planned 20% tax on crypto income until a comprehensive regulatory framework is implemented in the industry. Estimates indicate that this could happen by 2025.
Take Kwon’s case
The collapse of the South Korean cryptocurrency project Terra in May this year caused quite a stir in the space. The entity’s native token LUNA and its algorithmic stablecoin fell to zero, negatively affecting numerous investors. Unsurprisingly, some blamed Terra co-founder Do Kwon for the catastrophe.
Two months ago, the 31-year-old developer had to deal with another problem as he was investigated for tax evasion in South Korea. Prosecutors insisted he was shifting some of his profits to foreign tax havens to avoid paying taxes in his homeland.
Officials also accused him of giving tokens to family members as a way to avoid taxes, and were allegedly buying apartments with the funds.
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