Terra Chief, Do Kwon, in Fresh Legal Troubles from Tax Man

Paigambar Mohan Raj
Source: Finance Monthly (Original Image)

Terraform Labs co-founder and CEO, Do Kwon, will be investigated by South Korean authorities on accusations of tax evasion. Kwon made headlines when his Terra (previously LUNA, now LUNC) crypto project fell from over a hundred dollars to less than a cent.

Local media claim that prosecutors from the Seoul Regional Tax Office seized documents related to a special investigation by the National Tax Service against Kwon. The Terra chief is charged with transferring company profits to foreign tax havens to evade paying taxes in South Korea.

Additionally, Kwon is also suspected of avoiding taxes by giving tokens to family members that were utilized to buy residences.

Endless trouble for the Terra founder?

These tax-related investigations are Kwon’s most recent legal issues after the Terra ecosystem collapse, including the crashes of the luna (LUNA) and TerraUSD (UST).

When Terraform Labs and its management were hit with a $78 million tax penalty by the South Korean authorities in May, Kwon claimed that the firm did not owe any taxes.

The Securities and Exchange Commission (SEC) has also sent a subpoena to Do Kwon and Terraform Labs, who are both the subject of an inquiry in the United States as well.

Do Kwon is also accused of depositing $80 million into hidden wallets every month. Kwon is suspected of taking $2.7 billion out of the Terra Network before the disaster.

Additionally, there is evidence that Kwon manipulated Terra’s proposal vote. The accusations state that Do Kwon violated Terraform Lab’s rules by using a hidden wallet to cast a vote for Terra Station.

At press time Terra Classic (LUNC) was trading at $0.00005850, up by 25.3% in the last 7 days, but over 70% down in the last month. The new Terra network, LUNA, was trading at $2.29, up by 6.3% in the last 7 days, but down by 65.1% in the 14-day chart.