Korean tax officers seize $22M in crypto directly from exchange accounts |

South Korea’s city government has seized 25 billion won ($22 million) in tax evasion directly from its foreign currency accounts, local news agency Yonhap reported yesterday.

According to the press release, tax inspectors have discovered digital assets belonging to 1,566 individuals and executives of several companies on three cryptocurrency exchanges that have been identified as major tax offenders. Authorities then seized a total of $22 million from 676 of them to offset unpaid taxes.

118 people have already paid 1.26 billion won ($1.12 million) to get their cryptocurrencies back.

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Delinquent taxpayers constantly ask us not to sell their cryptocurrencies because they will pay their taxes, a city government official said in a press release.

They explained that those affected by the seizure likely expected the price of cryptocurrencies to rise and decided it would be more profitable to pay back taxes in exchange for digital assets.

For example, an unnamed hospital executive who owned $11.2 million in cryptocurrencies immediately paid $520,000 of his $900,000 tax debt and got the rest by asking the government not to sell his digital assets.

Interestingly, another man who owed the government about $20,000 specifically asked that he not sell his cryptocurrencies, worth $2,700, for at least two years. By that time, he explained, the value of the seized assets should have risen enough to not only cover his taxes, but also give him some profit.

Of the seized cryptocurrencies, bitcoin is the most popular with a 19% share, followed by DragonVein and Ripples XRP (16% each), as well as Ethereum (10%) and Stellar (9%).

Taxes will be higher

As mentioned, the issue of taxes is quickly becoming very controversial among cryptocurrency holders. According to unconfirmed reports, just yesterday a new tax bill was proposed in the US that would raise the tax rate on incomes over $1 million to 43.5 percent.

Investors from all walks of life, including holders of cryptocurrencies, responded with a massive collapse that sent markets into the red. This suggests that the new law, if passed, could lead to serious pressure on wealthy crypto ledger holders when it comes to paying taxes.

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Korean tax officers seize $22M in crypto directly from exchange accounts |

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