Do Kwon could be in more trouble, as he is being accused of financial crimes.
FatManTerra, a mysteriously never-sleeping news site, released information linking Do Kwon with a blockchain consulting firm Kernel Labs. According to Korean news sites, money was also reported on the news.
“National Tax Service was shocked by Terra’s virtual currency last year. Terra earned approximately 6 billion won.”
Do Kwon was last year fined for tax evasion. He was also ordered to pay 100billionwon ($80M in taxes). As only realized gains in South Korea are subject to tax, the amount will likely rise. This is not the only crime that he is being investigated for.
Terra’s legal problems
It is concerning that Terraform Labs and Do Kwon are facing increasing legal challenges. This makes it even more troubling that last week’s mass walkout saw the resignation of the entire Terraform Labs legal team.
According to the latest allegations, Terraform Labs received 6 billion won ($4.8m) from Terraform Labs’ sister firm, Kernel Labs. This transaction could have been a perfectly innocent one for consulting services. However, Do Kwon’s recent actions to remove any association to Kernel Labs make it seem suspicious.
KBS, a Korean news station, used a pseudonym to describe Kernel Labs and called it “company K”. However, references to Kernel Labs are found several times alongside Terraform Labs which suggests that it is indeed the company in question.
KBS has not confirmed the identity of the company. However, Kernel Labs will be cited based on the claims of our sources. Through patents filed by Do Kwon, evidence is also available linking Do Kwon and Kernel Labs. KBS also reported the news as follows:
“This is a Blockchain Consulting Firm K in Seongsudong, Seoul. The lab sign in the office is filled with computers.
Company K and Do Kwon
It is possible to conclude that KBS tried to leak the name, but not say it directly, “Consulting firm K…office, with the lab sign.” Do Kwon also amended the Luna Revival plan to delete reference to Kernel Labs, which would be highly suspicious.
One section that identified the roles and responsibilities of the new Luna blockchain had a reference at “TFL/Kernel Labs”, but was later amended to remove this reference. Image 1 is a cached copy of the original proposal, which was quoted in a comment by a user. Image 2 shows the revised proposal in its current form.
Image 1 – Source TerraStation
Image 2 – Source TerraStation
KBS reported that Terra and Kernel Labs looked indistinguishable when they were viewed by locals. KBS also reported that employees in a nearby office said they looked the same as Terra. KBS also reported they tried to speak with Terraform Labs members directly.
“All of them declined to answer and said, “Only a few people, including CEO Kwon Don-hyung know the true nature Terra and Luna.”
As more skeletons are discovered every day, the fascination with the Terra fall will only continue. CryptoSlate will keep you updated on all developments.
Terraform Labs was caught moving $4.8M through CryptoSlate, a shell company.
Did you miss our previous article…