NTS May Conduct Home Searches, Seize Cold Wallets to Target Ethereum Tax Evasion in South Korea

• NTS will target offline crypto devices as part of tax enforcement

• Officials will use crypto-tracking tools, transaction histories and suspicious transaction reports to identify concealed assets.

• From 2021–2025 the NTS reports seizing and liquidating roughly $108 million from over 14,000 individuals.

Meta description: NTS cold wallet seizure: South Korea’s National Tax Service warns cold wallets can be seized after home searches to recover unpaid crypto taxes. Read next steps.

South Korea’s National Tax Service has warned that cold wallets are not beyond its reach, stating that it will conduct home searches to combat tax evasion.

What is the NTS cold wallet seizure policy?

The NTS cold wallet seizure policy states that offline crypto storage devices and hard drives suspected of concealing taxable assets can be seized during authorized searches, and confiscated assets may be sold to satisfy tax liabilities. The measure is applied when transaction analysis indicates undisclosed holdings.

How will the National Tax Service detect cold wallet holdings?

The NTS uses crypto-tracking tools, exchange records and suspicious transaction reports (STRs) filed by virtual asset service providers (VASPs). Short, focused audits and transaction-matching software flag anomalies. If on-chain traces or exchange data suggest undisclosed transfers, investigators may seek search-and-seizure authorization.

NTS seized and liquidated over $100 million in crypto in four years — what does the data show?

A cold wallet is a crypto storage method that remains disconnected from the internet. While it reduces remote hacking risk, the NTS says the same offline protection can be used to conceal assets from tax authorities.

The agency first began actively targeting crypto holdings in 2021, confiscating about $50 million from roughly 5,700 suspects in initial operations. Since then, the NTS reports seizing and liquidating approximately $108 million in cryptocurrency from more than 14,000 individuals over four years.

Domestic crypto adoption has surged. As reported by local outlets, the number of investors rose to nearly 11 million as of June, up from 1.2 million in 2020. Reported trading volumes climbed from 1 trillion won (~$730 million) to 6.4 trillion won (~$4.7 billion) over the same period.

Why is the NTS focusing on cold wallets now?

The NTS cites rapid growth in crypto usage and rising suspicious-transaction reporting as reasons for stepped-up enforcement. STR filings reported by the Financial Intelligence Unit (FIU) reached nearly 37,000 as of August 2025, exceeding combined totals from 2023 and 2024 and prompting intensified scrutiny.

What enforcement powers does the NTS use?

The agency can request exchange account data, freeze accounts, conduct authorized home searches and seize devices. Seized assets can be liquidated at market value under the National Tax Collection Act to satisfy unpaid taxes.

Frequently Asked Questions

Can cold wallets legally be seized in South Korea?

Yes. Under South Korea’s National Tax Collection Act, the NTS can seize devices and assets when there is legal authorization and evidence suggesting assets are concealed to evade taxes.

How can taxpayers avoid seizure risk?

Maintain clear records, report taxable crypto gains, comply with exchange reporting requirements, and respond to official requests promptly. Transparency and accurate filings reduce enforcement risk.

What role do STRs play in enforcement?

STRs filed by VASPs alert authorities to suspicious behavior. A surge in STRs helps authorities prioritize investigations and can lead to audits, account freezes or search warrants.

Key Takeaways

• NTS cold wallet seizure is actionable: The NTS can seize offline devices when investigators find evidence of concealed taxable assets.
• Detection combines on-chain and off-chain data: Crypto-tracking tools, exchange records and STRs drive investigations.
• Document and report: Clear records and timely tax reporting reduce enforcement risk and potential asset liquidation.

Conclusion

The NTS cold wallet seizure notice signals a tougher enforcement era as crypto adoption grows in South Korea. Taxpayers should prioritize accurate reporting, maintain transaction records and cooperate with authorities to minimize seizure risk. COINOTAG will continue monitoring developments and official guidance.