Korean crypto investment firm Hashed reportedly under tax investigation

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Crypto investment firm Hashed is currently under investigation by the National Tax Service (NTS) in South Korea, according to local media.

The 4th Investigation Bureau of the Seoul Regional Tax Bureau, which manages the investigation, is best known for conducting tax evasion and fundraising investigations. A slush fund is a pool of funds raised through undisclosed means and set aside for undisclosed purposes.

On December 7, local media reported that the exact nature of the investigation is unclear.

An official from the regional tax office told reporters that, although they could not confirm the exact nature of the investigation, “intense investigations of small businesses without warning are not uncommon related to the collection of funds or tax evasion on the part of the CEO of the company “.

The investigation began early last month and is expected to end no later than the end of February 2022, just days before South Korea’s presidential election on March 9, 2022.

Hashed is one of South Korea’s foremost crypto investment firms. It was founded in 2017 by Simon Seokoon Kim, Ethan Kyuntae Kim and Ryan Sungho Kim, all three of whom are technically listed as CEOs or heads of the company.

Hashed launched his $ 200 million Venture Fund II on December 1, a year after launching a $ 120 million Venture Fund I. The last fund will focus on Web3 growth opportunities.

Related: 2021 Ends With A Question: Are NFTs Here to Stay?

Hashed’s investment portfolio includes more than 80 companies, including several crypto networks such as Klaytn and Cosmos, DeFi protocols such as MakerDAO and Synthetix, and NFT brands such as The Sandbox and Axie Infinity.

The South Korean government and NTS are increasingly monitoring the crypto industry throughout 2021.

However, good news has emerged following a year-long battle between lawmakers – the government passed a bill on December 3 that defers the collection of any tax on crypto trading for one year. When the tax goes into effect, in January 2023 instead of 2022, traders will pay 20% of any gain made above $ 2,100.

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