South Korea's Crypto Seizures for Tax Delinquents Hit $98.6 Million

Crypto seizures for delinquent local taxes in South Korea have reached $98.6 million over the past four years, but the amount recovered through actual sales is a mere $92,000, or 0.09% of the total. According to data from 17 metropolitan and provincial governments, 15,491 cases of crypto seizures were made between 2022 and 2025. However, only 63 cases resulted in actual sales, with the recovered amount being a tiny fraction of the total value seized. The difficulty in selling seized crypto stems from its price volatility, which can lead to sharp variations in the amount recovered depending on the sale timing. Local governments, including Seoul, have been disposing of seized crypto under their own rules, underscoring the need for a unified standard.

The revised Local Tax Collection Act, amended in 2022, allows local governments to seize and sell virtual assets held by tax delinquents. However, the sale process is often complicated by disputes over sale prices, which can lead to administrative litigation or damage claims. Seoul, in particular, transfers the virtual assets first and sells them immediately, with dispositions made on weekends or public holidays. People Power Party lawmaker Jin Jong-oh has called for the Ministry of the Interior and Safety to revise related regulations to standardize local governments' sale criteria for virtual assets.