Terraform Labs demanded $78 million in taxes

The South Korean Tax Service notified the founder of the Terra ecosystem, Do Kwon, and the management of Terraform Labs aboutthe need to pay taxes in the amount of ~ $ 78 million. This is reported by the local news outlet Naver, citing its own sources.

It is alleged that in June 2021 the taxinvestigated 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 whytax decided to levy taxes from Terraform Labs is that 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 noted that the tax could 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 Koreanlaw 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 because they lost money as a result of the collapse of UST.

In early May, the UST stablecoin lost its peg toUS 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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