- There have been allegations of fraud leveled at Terra’s founder by investors who were the recipients of the big crash.
- The latest accusation filed against Do Kwon and Terraform Labs is money laundering. As a report by KBS News says, the company has been accused of laundering a total of $4.8 million through a South Korean shell company.
- The magazine also revealed that the National Tax Service discovered the sum of 6 billion won worth around $4.8 million sent from Terraform Labs to Company K, which was recorded as “other expenses.”
Do Kwon and his firm, Terraform Labs, have not stopped making headlines since the massive collapse of the Terra ecosystem in early May.
There have been allegations of fraud leveled at Terra’s founder by investors who were the recipients of the big crash. The latest accusation filed against Do Kwon and Terraform Labs is money laundering. As a report by KBS News says, the company has been accused of laundering a total of $4.8 million through a South Korean shell company.
According to a former Terraform Labs developer, who spoke to the local news outlet, his previous employer had connections to “Company K”, which was run “under a name borrowed from Terra”. According to what staff said, the workspace was also titled “Terra” on the building plan but was later removed.
The magazine also revealed that the National Tax Service discovered the sum of 6 billion won worth about $4.8 million sent from Terraform Labs to Company K, which was recorded as “other expenses.”
FatMan confirms the accusation
Additionally, FatMan, a popular member of the Terra Research Forum on Twitter, allegedly did some research and confirmed that there were links between the two entities. Precisely, this whistleblower verified the connection between Company K and Kernel Labs, which was supposedly established by the same people who created Terraform Labs.
FatMan, in a series of tweets on May 30, shared details about the money laundering allegation. FatMan noted:
“Company K employees overlapped a lot with Terra employees and often shared the same spaces. Both were incorporated in 2018. The majority of company K employees were Terra developers. Company K CEO Mo Kim vehemently denied any affiliation of significance.
“Why is this interesting? Well, the Korean tax authorities reported that last year, Terra sent 6 billion won ($4.8 million) to the CEO of company K. This was reported on the books as other expenses. Hypothetically, if the two were one and the same, this would indicate laundering.”
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. (3/8)
— FatMan (@FatManTerra) May 30, 2022
“Company K employees overlapped a lot with Terra employees and often shared the same spaces. Both were incorporated in 2018. The majority of company K employees were Terra developers. Company K CEO Mo Kim vehemently denied any significant affiliation.”
FatMan
“Why is this interesting? Well, the Korean tax authorities reported that last year, Terra sent 6 billion won ($4.8 million) to the CEO of company K. This was reported on the books as ‘other expenses’. Hypothetically, if the two were one and the same, this would indicate laundering.”
FatMan
“KBS didn’t reveal who company K is… So let’s find out. As many venture capitalists will tell you, the surefire formula for a successful company is to name it with a cool word and slap “Labs” all the way. Tell me if this site looks familiar to you… https://kernellabs.co“
Meanwhile, Korean tax officials disclosed that Terraform Labs has been fined for tax evasion after noticing suspicious transactions to Kernel Labs.
