Jeju Seizes 230 Million Won in Crypto from 49 Tax Evaders After Large-Scale Probe

Jeju City in South Korea’s Jeju Special Self-Governing Province has concluded a large-scale investigation targeting nearly 3,000 residents suspected of tax evasion through hidden cryptocurrency holdings. The operation, led by Jeju’s tax authorities, confirmed that 49 individuals had failed to declare their crypto assets, resulting in the seizure of digital assets worth 230 million won ($165,458). The investigation focused on residents with overdue tax liabilities totaling 19.7 billion won ($14.17 million) across 2,962 cases [1].

Authorities leveraged data provided by South Korea’s four largest crypto exchanges—Bithumb, Upbit, Coinone, and Korbit—to track individuals who had not reported income from digital assets. The city also employed AI-powered tools to identify hidden assets and detect patterns of non-compliance. Tax chief Hwang Tae-hoon emphasized the city’s commitment to strengthening enforcement efforts to boost tax revenue and promote a culture of compliance [1].

Under South Korean law, local and national tax bodies have the authority to request data from domestic exchanges to investigate suspected tax evasion. The individuals targeted in the probe had outstanding tax bills exceeding 1 million won ($719) each. Jeju officials have begun freezing and seizing crypto assets from those who fail to settle their debts, with plans to liquidate the assets if necessary [1].

The move is part of a broader regulatory push to increase transparency in the crypto market. Similar efforts in Seoul’s Gangnam District have already led to the recovery of over $144,000 in unpaid taxes. These actions signal a growing emphasis on using technology and data analytics to address the challenges posed by the decentralized and often anonymous nature of cryptocurrencies [1].

The success of the Jeju operation highlights the potential of AI and data-driven tools in modern tax enforcement. As crypto assets become an increasingly significant component of personal wealth, the ability to detect unreported holdings is crucial for maintaining fair tax systems. The probe also demonstrates how local governments can collaborate with national regulatory frameworks to enforce compliance and deter evasion [1].

The results of the investigation raise questions about the effectiveness of current reporting mechanisms for crypto assets. Nearly 3,000 residents were found to have unpaid taxes linked to crypto, indicating a need for better public education and clearer guidelines for reporting digital asset income. Moving forward, greater awareness and streamlined reporting procedures may help reduce the need for large-scale enforcement actions [1].

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[1] South Korea's Jeju Wraps Crypto Probe of Almost 3,000 Tax Evaders, Seizes Coins (https://cryptonews.com/news/south-koreas-jeju-wraps-crypto-probe-of-almost-3000-tax-evaders-seizes-coins/)