Terraform Labs Faces A $78.5 million Fine In South Korea For Tax Evasion

Terraform Labs has reportedly been ordered to pay 100 billion won or $78 million in taxes by South Korea’s National Tax Service.

Terraform Labs Found Guilty of Tax Evasion

According to a report from a local publication, South Korea’s tax authorities found Terra’s parent companies The Ancore Company and Terraform Labs guilty of evading corporate and income tax.

The authorities found that Terraform Labs sent LUNA from its Singapore-established entity to the Luna Financial Guard (LFG) and determined that the transfer was done to avoid taxes. An additional tax can also be imposed on the Bitcoin BTCUSD acquired and sold by the LFG, according to the report.

Do Kwon reportedly holds a 92% stake in Terra Singapore,with the remaining 8% belonging to another South Korean national Shin Hyun-seong.

South Korean Govt Actively Investing the Terra Debacle

The South Korean government are actively investigating the Terra debacle as over 2,80,000 South Korean individuals lost their life savings during the UST-LUNA cash and atleast eight people reportedly have committed suicide in the matter.

Infact, the country’s Minister of Justice, Han Dong-hoon is actively involved in the investigation.  Moreover, the country has also revived a special joint financial and securities crime investigation unit called Yeouido Grim Reaper, after over 2 years of inactivity.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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