South Korea launches investigation into Hashed
South Korea’s National Tax Service (NTS) has opened an investigation into Hashed. The information, originally reported by Aju News, was confirmed by the blockchain company.
According to the report, investigators from the Seoul Regional Tax Office visited Hashed’s headquarters without prior notice. The unit handles cases of tax evasion and unlawful fundraising.
Details of the firm’s alleged wrongdoing were not disclosed. The investigation is due to be completed by February 2022.
“We cannot disclose information relating to tax investigations into individual companies,” said a senior NTS official.
Hashed’s Chief Growth Officer Edward Hong, in comments to The Block, confirmed that the NTS had initiated an investigation into the company. He said it was not related to tax evasion.
Hong said that Hashed invests in cryptocurrencies through its own funds, which are wholly owned by individual co-founders — taxes are levied on individuals. There are currently no tax obligations — the relevant amendment to the law will come into force on January 1, 2023.
Hong stressed that Hashed is cooperating with the investigation. He did not specify what information the NTS had requested.
Representatives of Hashed did not respond to ForkLog’s request.
The blockchain company was founded in 2017 and is based in Seoul. According to the site, its mission is to accelerate the mainstream adoption of blockchain “by deploying its own resources and expanding the capabilities of the next wave of entrepreneurs and innovators.”
On December 1, Hashed created a Web 3.0 ecosystem-focused fund of $200 million. The year before, the blockchain company raised $120 million for a fund to support tech startups and projects in the DeFi sector.
Hashed’s investment portfolio includes more than 80 companies and projects. Among them are Klaytn, Cosmos, The Sandbox, Decentraland, Axie Infinity, Enjin, dYdX, Injective Protocol and others.
As reported in late November, the Financial Services Commission (FSC) proposed bringing criminal liability for misconduct in the crypto market, including price manipulation and insider trading.
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