Reportedly, the company has laundered $4.8 million through a South Korean shell company in an elaborate scheme involving a “blockchain consulting firm K” based in Seoul, according to a report by South Korean publication KBS News on May 30.
A former developer at Terraform Labs told the magazine that their past employer had ties with the “Company K”, which was run “under a borrowed name by Terra”. As per the office staff, the workspace was also titled “Terra” in the building’s floor plan but has been removed in the meantime.
The KBS News also said that the National Tax Service has discovered that Terra had transferred 6 billion won (around $4.8 million) to Company K, and reported it as “other expenses”.
The Terra plot thickens
However, Terra Research Forum’s member and outspoken Twitter user known as FatMan or @FatManTerra conducted some research, confirming there were links between the two indeed.
Specifically, this whistleblower demonstrated the connection between Company K and Kernel Labs – which was allegedly established by the same people who created Terraform Labs.
In a series of tweets on May 30, FatMan goes into detail about this alleged plot.
Why is this interesting? Well, Korea's tax authorities reported that last year, Terra sent 6 billion won ($4.8m) to company K's CEO. This was reported on the books as 'other expenses'. Hypothetically, if the two were one and the same, this would indicate laundering. (4/8)
— FatMan (@FatManTerra) May 30, 2022
As per Korean tax officials, they reportedly fined Terraform Labs for tax evasion after noticing suspicious transfers to Kernel Labs.
