Terraform Labs caught moving $4.8M through shell company

It appears that Do Kwon whitethorn beryllium successful for much ineligible occupation arsenic allegations originate accusing him of further fiscal crimes.

FatManTerra, who seemingly ne'er sleeps, has released accusation tying Do Kwon to a blockchain consultancy steadfast Kernel Labs. Money has allegedly been Korean quality tract besides reported connected the quality stating,

“National Tax Service was caught by the information that past year, Terra received a virtual currency worthy astir 6 cardinal won from Terra.”

Do Kwon was fined past twelvemonth for tax evasion and ordered to wage 100 billion won ($80M) in taxes. The magnitude is expected to emergence implicit clip arsenic lone realized gains are taxed for cryptocurrency successful South Korea. The caller allegations suggest that this is not the lone transgression for which helium is present being investigated. 

Terra’s ineligible woes

Given the increasing number of ineligible battles connected the skyline for Terraform Labs and Do Kwon, it is adjacent much disconcerting that the full Terraform Labs’ ineligible squad reportedly resigned successful a wide walkout past week.

The latest allegations suggest that Terraform Labs’ sister company, Kernel Labs, received 6 cardinal won ($4.8 million) from Terraform Labs. While this could beryllium a wholly guiltless transaction for consulting services, the caller actions of Do Kwon to region immoderate relation of himself to Kernel Labs makes the transaction look suspicious.

The Korean quality outlet KBS utilized a pseudonym for Kernel Labs, calling it “company K. However, determination are references to Kernel Labs respective times alongside Terraform Labs, suggesting it is the institution successful question.

The authoritative individuality of the company, arsenic reported by KBS, cannot beryllium confirmed astatine this time, but Kernel Labs volition beryllium cited according to the allegations of our sources. Further, determination is evidence linking Do Kwon to Kernel Labs done patents filed by the company. In addition, KBS reported the quality successful the pursuing manner,

“This is simply a blockchain consulting steadfast K successful Seongsu-dong, Seoul.
The bureau with the laboratory motion is afloat of computers.”

Company K and Do Kwon

It whitethorn beryllium tenable to presume that KBS was attempting to leak the sanction without saying it outright, “Consulting steadfast K…office with the laboratory sign.” Further, Do Kwon amended the archetypal Luna Revival plan to region notation to Kernel Labs successful a highly suspicious move.

A conception that identified roles and responsibilities for the caller Luna blockchain contained a notation to “TFL/Kernel Labs” but has since been amended to region the notation to “Kernel Labs.” Image 1 beneath is simply a cached mentation of the archetypal connection quoted successful a user’s comment. Image 2 is the revised connection arsenic it presently reads.

Image 1 – Source: TerraStation

Image 2 – Source: TerraStation

According to KBS, Terra and Kernel Labs appeared indistinguishable to locals, reporting, “employees successful a adjacent bureau besides accidental they looked similar the aforesaid institution arsenic Terra.” KBS besides reported that they attempted to talk straight with respective members of Terraform Labs,

“all of whom declined to answer, saying, “Only a tiny fig of people, including CEO Kwon Do-hyung, cognize the existent quality of Terra and Luna.”

The fascination with the Terra illness is apt to proceed arsenic much skeletons travel retired of the closet daily. The communicative is so not over, and CryptoSlate volition beryllium definite to support you informed of each the latest developments.