Terra boss, Do Kwon is being investigated on the charges of evading income and corporate taxes.
Amid the ongoing Terra saga, founder Do Kwon is reportedly being investigated by the South Korean government for alleged tax evasion.
The South Korean Tax Service has levied over 100 billion won ($78.4 million) in unpaid taxes against Kwon and Terraform Labs.
Do Kwon, the CEO of Terra (LUNA), has been under scrutiny since the network’s collapse. He has, however, laid out some plans in an attempt to resurrect the Terra Chain.
Kwon To Pay $78 million In Taxes
According to reports, tax authorities in the country have charged Terraform Labs and its CEO with evading income and corporate taxes.
Since December 2021, Kwon and Terraform have been dissatisfied with the country’s taxation policy. He even attempted to dissolve a domestic corporation to relocate overseas, just before the Lunar crash. This has directly raised concerns about Kwon’s failure to pay taxes.
Earlier, a South Korean lawmaker raised his voice to request that Kwon investigate the Terra crash. Terra Luna, a cryptocurrency with a market cap of more than $40 billion, collapsed in less than a week. According to the report, Terra’s founder, Terraform Labs, and other officials were recently notified by the National Tax Service that they must pay a 100 billion won levy. However, in June 2021, the agency launched a special tax investigation against Terra’s parent company.
Is LFG A Scam?
According to the investigation, CEO Kwon owns 92% of Terra Singapore. While Daniel Shin, CEO of Chai Corporation, who previously denied any connection with Terra, owns approximately 8% of the company. Meanwhile, according to the report, Chin is a registered director of the company.
Following an investigation by the South Korean Tax Agency in October, Terra Virgin has assessed 4.66 billion won (approximately $3.64 million) in income tax. A corporate tax of 44.47 billion won (approximately $34.7 million) was also imposed on the company. The Tax Agency also stated that the Terra established the Luna Foundation Guard tour to avoid taxes.