Japanese tax authorities are investigating an Osaka-based educational institution over missing funds that were allegedly used to buy cryptocurrency, a local newspaper reported on Wednesday.
The inspection of Meijo Gakuin Educational Corporation began on Tuesday, according to The Mainichi national daily, along with probes by the Osaka Regional Taxation Bureau into real estate brokerage Sun Kikaku and other companies linked to the case.
Nearly $1 Million Lost in Crypto Investment
Meijo Gakuin's former chairwoman allegedly instructed the board to bank JPY 100 million ($928,700), earmarked for its affiliate - Osaka University of Tourism, which was then withdrawn and used to buy an unnamed cryptocurrency in an ICO.
Sources told Mainichi that the cryptocurrency went public in March 2019, but the price plummeted, exposing Meijo Gakuin to severe losses on the investment. Also unaccounted for is a JPY 2.1 billion deposit for the sale of land for a high school in the city, brokered by and deposited with Sun Kikaku.
The cryptocurrency involved in the case remains almost worthless, according to the report, while the - then - chairwoman of Meijo Gakuin resigned over the case in June.
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