South Korea’s tax agency is looking into crypto investment firm Hashed according to local media.

Crypto investment firm Hashed is currently under investigation by the National Tax Service (NTS) in South Korea according to local media.

The 4th Bureau of Investigation from the Seoul Regional Tax Office, which is handling the investigation, is best known for conducting investigations into tax evasion and slush fundraising. A slush fund is a pool of funds raised through undisclosed means and set aside for undisclosed purposes.

On Dec. 7, local media reported that the exact nature of the investigation is not clear.

An official from the regional tax office told reporters that although they could not confirm the exact nature of the investigation “intense investigations on small businesses without any prior notice are not uncommonly related to slush fundraising or tax evasion on the part of the company’s CEO.”

The investigation began early last month and is set to conclude no later than the end of Feb. 2022, just a few days before the South Korean presidential election takes place on March 9, 2022.

Hashed is one of South Korea’s highest-profile crypto investment firms. It was founded in 2017 by Simon Seokoon Kim, Ethan Kyuntae Kim, and Ryan Sungho Kim, all three of whom are technically listed as CEO, or heads of the company.

Hashed launched its $200 million Venture Fund II on Dec. 1, a year after it launched a $120 million Venture Fund I. The latest fund will focus on Web3 growth opportunities.

Related: 2021 ends with a question: Are NFTs here to stay?

Hashed’s investment portfolio includes over 80 companies including several crypto networks such as Klaytn and Cosmos, DeFi protocols such as MakerDAO and Synthetix, and NFT brands like The Sandbox and Axie Infinity.

The South Korean government and the NTS have been increasingly monitoring the crypto industry throughout 2021.

However, some good news emerged following a year-long battle among lawmakers — the government passed a bill on Dec. 3 that postpones levying any tax on crypto trading for a year. When the tax comes into effect, in January 2023 instead of 2022, traders will pay 20% of any gains made over $2,100.

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