Terra receives hefty fine, special team investigates LUNA » Crypto Insiders

The legal problems are mounting rapidly for the company and the founder behind the recently crashed Terra network and LUNA and UST rates.

Terra receives a hefty fine from the tax authorities

Terraform Labs, the company Terra of founder Do Kwon, has been fined a whopping 100 billion Korean won, or about $78.3 million or €74.5 million. That reports the South Korean Naver News on May 18th.

The National Tax Service, the South Korean tax authority, has fined Terraform Labs and its founder for tax evasion.

The report states that Do Kwon was not happy with the tax rules for cryptocurrencies in South Korea. According to the publication, he would have tried to liquidate all domestic business in the country before the LUNA and UST prices collapsed completely.

Apparently, South Korea’s tax authorities have been scrutinizing Terraform Labs for suspected tax evasion since last June. The tax authorities opened the investigation after the company sent LUNA from Terra Singapore to the Luna Foundation Group to evade tax.

Terraform Labs was registered in Singapore and the Caribbean Virgin Islands, but operated in South Korea. The publication reports that according to the tax law it does not count where a company is registered, but where it operates.

Special investigation team back after 2.5 years for LUNA

Meanwhile, the South Korean government has reinstated the so-called “Grim Reapers of Yeoui-do”. This special investigation team, consisting of several financial regulators, will investigate the LUNA & UST crashes.

Today: Korea’s “Grim Reapers of Yeouido” – Financial and Securities Crime Joint Investigation Team – are back after 2.5 years.
And its first target is $LUNA / @terra_money

— Jun (@zunahn) May 18, 2022

It is the first study that the team has tackled in 2.5 years. The infamous research group was dismantled by the previous president and is now back. Between 2013 and 2020, the team’s investigations led to as many as 346 arrests and 965 convictions.

Yesterday it was reported on Crypto Insiders that it Terraform labs legal team has resigned† The day before it came out that South Korean regulators conduct an “emergency inspection” to the incident. Earlier this week it turned out that an investor filed a complaint against Do Kwon† Even the American Securities and Exchange Commission (SEC) is reportedly already investigating.

–