Do Kwon’s Firm (Terraform Labs) Accused of laundering $4.8 Million: Details

Do Kwon and his firm, Terraform Labs, have not ceased making headlines since the massive collapse of the Terra ecosystem in early May. There have been accusations of fraud directed at the Terra founder by investors who were at the receiving end of the major crash.

The latest allegation leveled against Do Kwon and Terraform Labs is money laundering. As a report by KBS News has it, the firm has been accused of laundering a total of $4.8 million via a South Korean shell company.

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According to a former developer at Terraform Labs, who spoke with the local news channel, their past employer had connections with the “Company K”, which was run “under a borrowed name by Terra”. Based on what the staff said, the workspace was also titled “Terra” in the building’s floor plan but was later removed.

The Magazine also revealed that the National Tax Service has uncovered the sum of 6 billion won worth around $4.8 sent from Terraform Labs to Company K, which was recorded under “other expenses.”

FatMan Confirms Allegation

Also, FatMan, a popular Terra Research Forum member on Twitter, reportedly conducted some research and confirmed there were links between the two entities.

Precisely, this whistleblower verified the connection between Company K and Kernel Labs, which was allegedly established by the same people who created Terraform Labs.

FatMan, in a series of tweets on 30th May, shared the details about the money laundering allegation.

FatMan noted:

“Employees from company K had great overlap with employees from Terra and often shared the same spaces. Both were incorporated in 2018. Most in company K’s employ were straight up Terra developers. Company K’s CEO, Mo Kim, vehemently denied any major affiliations.

“Why is this interesting? Well, Korea’s tax authorities reported that last year, Terra sent 6 billion won ($4.8m) to company K’s CEO. This was reported on the books as ‘other expenses’. Hypothetically, if the two were one and the same, this would indicate laundering.”

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“Hey, that looks just like the Terra sites! Because they’re made by exactly the same people. Kernel Labs has received no online coverage in the West, and KBS omitted the name – a lesser-known Korean news site covered the link but went under the radar.

“KBS didn’t disclose who company K is… So let’s find out. As many VCs will tell you, the surefire formula to a successful company is to name it a cool word and slap ‘Labs’ to the end. Tell me if this site looks familiar.”

Meanwhile, it was made known by Korean Tax officials that Terraform Labs have been fined for tax evasion after noticing suspicious transactions to Kernel Labs.

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