Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

South Korean Authorities Turn the Heat on Terra, Do Kwon Faces $78 Million Fine For Tax Evasion

Published 05/19/2022, 07:17 AM
Updated 05/19/2022, 07:30 AM
South Korean Authorities Turn the Heat on Terra, Do Kwon Faces $78 Million Fine For Tax Evasion

South Korean Authorities Turn the Heat on Terra, Do Kwon Faces $78 Million Fine For Tax Evasion

Since the Terra ecosystem crash, the challenges faced by Do Kwon and his Terraform Labs have been coming in thick and fast. The project and its founder have now been charged with tax evasion.

Terra to Pay $78 Million in Taxes

Just days after the legal team of Terraform Labs jumped ship, Do Kwon was reportedly ordered by South Korea’s National Tax Service to pay 100 billion won (approximately $78 million) in taxes.

According to South Korean news agency Naver, the tax authorities of South Korea found Terra’s parent companies, The Ancore Company and Terraform Labs, guilty of evading corporate and income tax.

Terraform Labs Evaded Taxes Using Singapore as Cover

According to the report released by authorities, Terraform Labs had sent LUNA from its Singapore-established entity to the Luna Financial Guard (LFG).

South Korea’s National Tax Service concluded that the movement of funds to LFG was done in order to evade taxes.

Although LFG and Terraform Labs were established in Singapore, South Korean tax authorities ruled that their “place of actual management” subjects them to pay taxes in the country.

On the Flipside

  • In a breath of fresh air for Terra, 78% of votes cast by the network validators favor the hard fork of the Terra chain.

Why You Should Care

The tax evasion charges filed against Terra only add more pressure on a project already under intense duress from its ecosystem collapse.

Continue reading on DailyCoin

Latest comments

ponzi schemes always end poorly. fancy words and fake paper trailers don't hide scams. hooray for South Korean authorities for tracking down the scam
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.