Do Kwon Says Shutdown of Terraform Labs Office Was Just Coincidental

A few days ago, court filings revealed that Do Kwon, the co-founder of the Terra blockchain, had liquidated Terraform Labs, the technology business underpinning the Terra blockchain. According to the official filings, two South Korean offices were closed and the Terraform Labs Korea firm was dissolved.

Do Kwon Says Shutdown of Terraform Labs Office Was Just Coincidental

With allegations emerging that Terra’s creator, Do Kwon, closed the firm’s headquarters and branch in South Korea only days before the ecosystem meltdown, some of the crypto community have speculated that the founder may be culpable for the system’s entire collapse.

According to Do Kwon, the shutdown of Terra’s office in Korea was entirely coincidental and had nothing to do with Terra’s accident. He also took advantage of the chance to declare that he is now in Singapore.

Do Kwon stated that he has been in Singapore since December of last year – this is a personal decision that he has long planned. He also said that he has been clear about his location in Singapore in several interviews and podcasts, and that winding down a corporation just takes time, and that the timing is purely coincidental.

Do Kwon reported that the National Tax Service of South Korea had undertaken a tax audit of the company and that the company, along with others, had paid its taxes in full. He also stated that Terra’s predicament was not unique; however, he did not name any other crypto businesses that may have been affected.

Terraform Labs was dissolved in the days preceding what many are dubbing the Terra Blockchain’s crash, in which both its native token and its programmable stablecoin wiped away around $50 billion from the cryptocurrency market value. Others have compared the situation to that of the Lehman Brothers.

According to the South Korean news site Digital Today, evidence collected from the country’s Supreme Court Registry Office shows that Do Kwon effectively liquidated two branches and an entire corporation.

Several shareholders are still grieving their losses following the bankruptcy of LUNA and UST. Binance, for example, bought $3 million in Terra seeing its 15 million LUNA tokens worth $1.6 billion at peak rates. This investment is currently worth $3,000 dollars.  Apart from Binance, on-chain data shows that Hashed, a South Korean venture capital firm, has lost $2.9 billion on its Terra (LUNA) assets.

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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Jai Hamid

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