After the US SEC went after Do Kwon, South Korean authorities are reportedly following suit - this time, for tax evasion.
Do Kwon, Terra's Founder
In the latest example of global authorities going after Terraform Labs, the organization’s co-founder, Do Kwon, will reportedly be investigated for tax evasion in South Korea.
According to local reports, prosecutors carried out a search and seizure from the Seoul Regional Tax Office and were able to secure data from a special investigation by the National Tax Service on Kwon.
The Terraform Labs chief is accused of funneling gains from the business to overseas tax havens to avoid paying taxes in Korea.
Kwon is also accused of gifting tokens to family members as a way of tax avoidance. These asset gifts were reportedly used to purchase apartments.
These tax-related investigations are the latest regulatory troubles for Kwon since the implosion of the Terra ecosystem, including the luna (LUNA) and TerraUSD (UST), crashes.
Meanwhile, back in May, Kwon said that Terraform Labs did not owe taxes after the South Korean government slapped the company and its executives with $78 million tax fine.
Do Kwon and Terraform Labs are under investigation in the United States as well and have been ordered to comply with a subpoena issued by the Securities and Exchange Commission.
As recently reported by CryptoPotato, Do Kwon refuted allegations stating that he cashed out $2.7 billion months before UST depegged from the dollar.
Anthonia is a fintech writer who has been involved in the crypto space since 2017 covering developments across regulations, adoption, and several other aspects of the Industry. When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games.