Korean Governments Seize $98.6 Million in Crypto for Taxes, Recover Only $92,000

Crypto assets seized by South Korean local governments for delinquent taxes have totaled 136.2 billion won ($98.6 million) over the past four years, but actual sales have recovered only a tiny fraction of that amount.

According to data obtained by People Power Party lawmaker Jin Jong-oh from 17 metropolitan and provincial governments, 15,491 cases of crypto seizures against local tax delinquents were reported from 2022 to 2025.

Of the total amount seized, only 127 million won ($92,000) across 63 cases was actually sold, which translates to just 0.09% of the total value confiscated.

The difficulty in selling seized crypto assets is largely due to the price volatility of cryptocurrencies, which can result in sharply varying amounts recovered depending on when a sale is made.

Additionally, delinquent taxpayers may dispute the sale price, leading to administrative litigation or damage claims.

Some local governments, including Seoul, have adopted their own standards for selling seized assets, but experts argue that the need for a unified standard is urgent.