Terra’s Do Kwon denies any tax evasion attempt on Twitter after South Korean authorities filed a lawsuit

Days after news of a tax evasion lawsuit being filed against Terra in South Korea, Terraform Labs CEO Do Kwon has stated on Twitter that the firm’s closing of two offices in Busan and Seoul was just accidental and had nothing to do with it connection with the ongoing investigations of the national tax authorities. Kwon, who hasn’t been very active on the microblogging platform since the UST, LUNA crash on May 13, clarified that his decision to move to Singapore was unrelated to the ongoing investigation and that he has been since December 2021 in Singapore.

Terraform Labs is the core development team working on the Terra blockchain, whose native assets, LUNA and UST stablecoin, recently collapsed after a bank run that wiped out billions of dollars in value.

A local news report last week indicated that authorities in Korea were investigating Kwon and Terraform Labs over more than US$78 million (about Rs.6.04 billion) in unpaid corporate taxes.

The investigation into Terraform Labs first began in June 2021. The investigation revealed that the company was registered in the Virgin Islands and Singapore. According to the investigation, the Terra Virgin Islands subsidiary was fined $3.6 million (approx.

The decision is said to have made Kwon unhappy with crypto taxation in the country, and according to the Naver News report, just before the LUNA crash, Kwon attempted to liquidate Terra’s domestic operations. The financial watchdog allegedly blew up Terra Labs trying to transfer tokens to the Luna Foundation Group in Singapore.

When questioned on Twitter about the accuracy of the reports by FatMan, an anonymous Terra analyst and commentator, Kwon responded.

“We have no outstanding tax liabilities in Korea,” he said, adding that the company has already paid its fees in full after facing a tax audit. “We are happy to participate to the best of our ability in any legal process or regulatory investigation – we have nothing to hide,” Kwon added. Terra’s Do Kwon denies any tax evasion attempt on Twitter after South Korean authorities filed a lawsuit

Ryan Sederquist

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