$78 million fine: Terraform Labs to answer for tax evasion

Initially, the company was suspected of tax evasion. Also, the co-founder of Terraform Labs, Do Kwon is in the focus of the tax inspection attention.

As the tax authorities found out, the company was registered in Singapore and had registration in the Virgin Islands. After investigating and examining the documents, the security forces found that the following frauds were carried out in the company: The constant transfer of Luna from Terra Singapore to Luna Foundation Guard. According to South Korean media, the company has been fined because it is reasonably suspected of income and corporate tax evasion. In addition, according to the law of South Korea, where the company’s management was located, taxes must be paid not at the place of registration but at the place of actual management. As a result, Do Kwon and Terraform Labs were fined 100 billion won, which equates to 78 million US dollars. Also, according to the sources of the media that published the article, Kwon was extremely dissatisfied with the situation in the country related to taxes on digital currencies and wanted to stop all internal operations of Terra even before the fall of Luna.