The South Korean Revenue Service notified the founder of the Terra ecosystem Do Kwon and the management of Terraform Labs of the need to pay taxes in the amount of ~ $ 78 million. About this informs local news outlet Naver, citing its own sources.
In June 2021, the IRS allegedly investigated The Ancore Company and Terraform Labs for corporate and income tax evasion. In the course, it was confirmed that CEO Kwon owns a 92% stake in Terra Singapore, the Singapore-based subsidiary of Terraform Labs.
According to Naver, the reason why the IRS decided to levy taxes on Terraform Labs is because the company is considered domestic. Despite the fact that the business was registered in Singapore, South Korea remained the place of “actual management”, since the board of directors consists of Koreans and residents.
The media note that the tax may increase, as the Korean authorities also intend to interpret the donation of bitcoin to the Luna Foundation Guard as other income.
Meanwhile, one of the leading Korean law firms, LKB & Partners, plans to sue the creator of the Terra ecosystem, Do Kwon. According to Munhwa Ilbo, the legal giant intends to file a lawsuit against Kwon on behalf of ordinary investors with the Seoul Metropolitan Police Department. It is also alleged that some of the employees of LKB & Partners may also join the lawsuit, as they lost money as a result of the collapse of UST.
In early May, the UST stablecoin lost its peg to the US dollar. What exactly caused the incident remains unclear. UST/USD quotes fell from $1 to $0.12. The native token of the Terra ecosystem has also been hit, having lost 100% in the LUNA/USD pair over the past week.
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