The Terra fiasco doesn’t seem to end. According to a local KBS News news outlet, South Korean Prosecutors found a Terraform Labs subsidiary. The firm is called FLEXE Corporation, and prosecutors say it facilitated cash flow from overseas to Terra affiliates. South Korean authorities began their investigation in May, after the highly publicized fall of Terraform labs.
According to KBS, the firm was a non-operative paper company. However, upon visiting the registered address, investigators found that the company did not have a physical presence in the building. Additionally, the firm lists Terraform Labs CEO Do Kwon as the only internal director of the firm. The so-called company reportedly only exists on paper.
Investigators immediately began tracing the money. Following the money is a common practice in scams and thefts. Authorities claim to have traced financial flows totaling 6 billion Korean won (about $4.5 million) and 12 billion won (roughly $9 million) that originated in Terra’s Singapore base. The cash then made its way to their British Virgin Islands’ office before arriving at FLEXE in South Korea and other Terra affiliates.
KBS said the company served as a conduit for receiving money from cryptocurrency liquidations. A former Terraform Labs worker also noted that FLEXE interfered with the business’s special tax examination the previous year.
The prosecution has just joined the investigative team together with the Financial Investigation Department. The Financial Crimes Unit of the Seoul Southern District Prosecutor’s Office has been in charge of probing Terra.
The now fallen company’s trouble seems endless. CEO Do Kwon’s actions have been discussed at great lengths. The infamous hacking group, Anonymous, has also released a video affirming that Kwon would be brought to justice.
At press time, Terra’s old coin, named TerraClassic (LUNC), was trading at $0.00010880, up by 18.9% in 24 hours.