South Korea-based investment firm Hashed is currently scrutinized by the National Tax Service (NTS), as per the local media. The 4th Bureau of Investigation from the Seoul regional tax office is handling the investigation. The regional department is famous for its investigations into slush fundraising activities and tax evasions.
The local media on Tuesday reported that the exact reason and level of the investigation is still unknown. However, a regional tax office official said that We could not confirm the exact nature of the scrutiny. He adds that the massive investigation on small businesses regarding slush fundraising or tax evasion is not very common without prior notice.
A slush fund is a pool of funds collected via undisclosed methods and set aside for undisclosed goals.
Hashed broadening its portfolio
Notably, the venture capital Hashed is among the high-profile crypto investment firms. Founded in 2017 by Ethan Kyuntae Kim, Ryan Sungho Kim, and Simon Seokoon Kim, the firm has been joining various hands since then. The most recent one is pulling $200 million funding for backing Web 3.0 growth opportunities and innovations through a funding round on December 1.
Since early November, the investigation has been going on and is expected to conclude before the end of February 2022, as the country is set to have presidential elections from March 9, 2022.
The investment portfolio of the exchange giant Hashed contains more than 80 companies, including DeFi protocols like MakerDAO and Synthetix, multiple Crypto networks like Klaytn and Cosmos, and NFT brands like The Sandbox, which launched an alpha version of its metaverse recently.
South Korean authorities and the NTS have been intensively involved in the crypto industry throughout 2021 and has even confused investors with their conflicting announcements. However, the investors got some good news recently as the lawmakers decided to delay the long-awaited tax bill on December 3. When the tax comes into effect in 2023, traders will be bound to pay 20% of any profits made over $2,100.
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