Do Kwon Reveals Terra’s Office Closing was “Coincidental,” Says the Company Owes no Tax


With reports emerging that Terra’s founder, Do Kwon, closed the firm’s headquarters and branch in South Korea just days before the ecosystem crash, members of the crypto community have been speculating that the founder might be responsible for the overall collapse of the system.

However, information from Do Kwon himself has revealed that the closing of Terra’s office in Korea was “purely coincidental” and had nothing to do with Terra’s crash. He also used the opportunity to reveal that he is currently in Singapore.

In his words,

I’ve been in Singapore since last December – this is a personal decision and has long been planned. I’ve been open about being located in Singapore across multiple interviews and podcasts. Shutting down a company just takes some time, and timing is purely coincidental.

This, hopefully, answers the questions of his whereabouts and whether he knew that Terra was going to collapse soon.

Terra Does not Owe Korea Tax

The Terraform Labs CEO, in another tweet, denied that his firm had any tax obligation to the Korean government.

Do Kwon revealed that South Korea’s National Tax Service had conducted a tax audit of the company and the firm, alongside others, had paid its taxes in full.

He also said that this situation was not unique to Terra; however, he failed to disclose other crypto firms that might have been affected.

Several reports had emerged that Terraform Labs had been slapped with a 100 billion won ($78 million) fine for its failure to honor its tax obligations.

Terra and its CEO have been at the center of discussions since the capitulation of LUNA and UST. Investors have filed lawsuits against Do Kwon and his firm in Korea, with the authorities worldwide also discussing how to better regulate the crypto space.

However, Do Kwon appears focused on reviving the Terra ecosystem through various initiatives that are being put to vote.