Jeju City Cracks Down on Tax Evaders with Crypto Seizures Worth $165,000

Highlights:

• Jeju City cracks down on tax evaders by seizing crypto from 49 residents holding $165000 in hidden assets.
• Authorities in Jeju reviewed 2962 residents with tax arrears totaling $14.2 million and confirmed hidden crypto holdings.
• South Korean cities like Seoul and Paju also seized millions in crypto, showing a wider effort against tax evasion.

Jeju City officials have completed a major investigation into thousands of residents with overdue taxes. The probe targeted 2,962 individuals who each owed more than 1 million won in taxes and fines. The combined arrears stood at 19.7 billion won.

🇰🇷 Jeju tax officials just froze crypto from locals dodging ₩19.7B ($14.2M) in taxes.

– 49 people caught with ₩228M ($166K) on Upbit, Bithumb & more

– Korea has seized $180M+ in crypto from evaders since 2021

More: https://t.co/vi2cwBc02O pic.twitter.com/s2oLVbcW44

— Fomos News (@fomos_news) August 18, 2025

Investigators reviewed data from South Korea’s largest crypto exchanges: Bithumb, Upbit, Coinone, and Korbit to uncover hidden wealth. Authorities confirmed that 49 of the residents held coins in exchange wallets. The total value of the assets reached 230 million won.

Officials emphasized that some residents attempted to line their pockets with crypto while ignoring overdue tax obligations. The city announced that the assets will be used to settle unpaid bills owed to the authorities. Investigators stressed that the findings highlighted how digital assets often play a role in tax evasion cases. Jeju City’s investigation demonstrated a coordinated approach between local tax authorities and major exchanges. The probe showed how digital currencies are no longer outside the reach of enforcement measures.

Jeju City Cracks Down on Tax Evaders Using Crypto Seizures

Jeju authorities designated the four exchanges as third-party debtors after confirming the holdings. This step gave the city the power to freeze the wallets of delinquent taxpayers. Officials also explained that liquidation procedures will begin if individuals ignore settlement requests after notification.

The crackdown revealed how local governments are adopting tougher measures against crypto-linked tax evasion. Law enforcement employed sophisticated artificial intelligence tools to monitor abnormal activity, identify unknown accounts, and verify the magnitude of understated assets. These tools enhanced the effectiveness of investigations and asset recovery. Tax Division Chief Hwang Tae-hoon confirmed the city’s commitment to stronger action. He said, “We will continue to strengthen our response to tax delinquency using new assets such as virtual assets to thoroughly uncover hidden tax sources.”

South Korea’s legal framework supports these actions. Laws have since 2021 enabled tax offices to request access to exchange data in cases where they suspect tax evasion. Such steps will allow local and national governments to exploit crypto assets directly so that taxpayers cannot use them as a safe haven. Meanwhile, South Korea recently restricted 14 crypto exchange apps from the Apple Store in a bid to regulate the unregistered exchanges.

Crypto Seizures Expand Across South Korea

Jeju’s campaign reflects a broader national strategy. Seoul’s affluent Gangnam District reported seizing more than $244,000 worth of crypto from delinquent taxpayers this year. Officials said the effort encouraged stronger compliance among residents and improved local revenue collection.

Gangnam district in Seoul is intensifying its crackdown on crypto tax evasion by confiscating digital assets from tax dodgers. Using data from major exchanges and blockchain analytics, authorities have seized over $244,000 since last year, encouraging voluntary payments and… pic.twitter.com/saOJdsoOqg

— Fama Crypto (@Famacrypt) August 13, 2025

National figures show even greater impact. Authorities in South Korea confiscated more than $180 million in cryptocurrencies held by tax evaders between 2021 and 2022. In an unrelated action, Seoul seized the equivalent of $22 million by apprehending individuals and corporate managers who were hiding assets in tokens. Other cities also stepped up their enforcement. Paju also revealed that it will freeze and sell crypto that is owned by residents who have not paid taxes. These steps show that crypto tracking has become a priority tax enforcement tool across the country.