Tax officials in Jeju City, South Korea, have reportedly begun freezing and seizing cryptocurrencies from individuals who have not paid their taxes. This action is part of a larger investigation into over 2,900 individuals who collectively owe 19.7 billion won ($14.2 million) in back taxes.
By analyzing data from major South Korean exchanges like Bithumb, Upbit, Coinone, and Korbit, authorities identified 49 individuals with crypto holdings valued at over $166,269. The Jeju City Tax Division has designated these exchanges as third-party debtors, giving them the authority to seize the digital assets to settle the outstanding tax debt.
Jeju City's Tax Division Chief, Hwang Tae-hoon, stated that the city will continue to use "new assets such as virtual assets" and AI-based analysis to uncover hidden tax sources and ensure tax compliance. This initiative aligns with a 2021 law in South Korea that allows authorities to seize cryptocurrencies from tax evaders. Similar actions have been taken in other cities, with the government confiscating over $180 million in crypto from tax evaders between 2021 and 2022.
August 2025, Cryptoniteuae