Cryptocurrency News

Hashed is under investigation by the South Korean tax authority

  • South Korean crypto venture capital firm Hashed is under investigation by the National Tax Service (NTS)
  • The investigation began last month, and Hashed believes the NTS could complete it by early next year
  • The news comes a few days after Hashed launched its second crypto fund worth $200 million

South Korean crypto venture capital firm Hashed is under investigation by the National Tax Service (NTS).

Hashed has confirmed the investigation

Today, Korean news agency Aju News reported that Hashed is under a “special” tax investigation by the 4th Bureau of Investigation of the Seoul Regional Tax Office. The bureau is best known for its investigations into tax evasion and slush fundraising. A “slush fund” is a pool of funds collected in an undisclosed manner and used for undisclosed purposes. The exact nature of the investigation is not clear, but according to the head of growth at Hashed Edward Hong, it is not related to tax evasion or slush funds.

In an interview with The Block, Edward Hong said that it is currently impossible to evade taxes or create slush funds in South Korea, as there is currently no requirement for individuals to pay crypto taxes in South Korea. According to Hong, Hashed invests in cryptocurrencies through its own funds, which the individual co-founders fully own. Therefore, it will be liable to pay tax as an individual and not as a company. The investigation began last month, and Hong believes the NTS could complete it by early next year. He also stated that Hashed is cooperating with the investigation.

The firm recently launched a $200 million crypto fund

Hashed is one of South Korea’s highest-profile crypto investment firms. It was founded in 2017 by Simon Seokoon Kim, Ethan Kyuntae Kim, and Ryan Sungho Kim, all three of whom serve as CEO and head of the company. The news comes a few days after Hashed launched its second crypto fund worth $200 million to invest in Web3 startups focused on the Metaverse and DeFi. The company had launched its first fund last year with a size of $120 million. Hashed’s investment portfolio includes over 80 companies, including several crypto networks like Klaytn and Cosmos, DeFi protocols such as MakerDAO and Synthetix. 

The South Korean government and the NTS have increasingly monitored the crypto industry in 2021. The tax authority has investigated several crypto companies this year, including HN Group (the issuer of the HDAC token), Korea Digital Exchange (the operator of the local cryptocurrency exchange Flybit), ICONLOOP, Ground X, and Terra.

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About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and blockchain startups.

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