South Korean crypto VC Hashed confirms it is under investigation by the country's tax authority

Quick Take

  • South Korea-based crypto VC Hashed is under investigation by the country’s national tax authority.
  • Edward Hong, head of growth at Hashed, told The Block that the investigation is not related to tax evasion or slush funds.

Hashed, a crypto venture capital firm based in South Korea, has confirmed to The Block that it is under investigation by the National Tax Service (NTS).

Earlier today, Korean news outlet Aju News reported that Hashed is under a "special" tax investigation by the 4th Bureau of Investigation from the Seoul Regional Tax Office within the NTS. This bureau is particularly known for conducting investigations into tax evasion and slush funds, per the report. A slush fund refers to a sum of money reserved for specific purposes in a business. Oftentimes, slush funds are not accounted for and used for personal gains or unlawful purposes.

A "high-ranking" NTS official did not confirm the Hashed investigation to Aju News but they said the agency does not start an investigation against a small firm unless it is related to tax evasion or a slush fund by a company's CEO.

But Edward Hong, head of growth at Hashed, told The Block that the investigation is not related to tax evasion or slush funds. He said "it is impossible to evade taxes or create slush funds in the first place" because there is currently no obligation to pay crypto taxes by individuals in South Korea.

Crypto taxation for individuals in South Korea was originally scheduled to be implemented from January 2022 but has now been deferred by one year to January 2023.

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