Terra’s S.Korean office closure ‘purely coincidental’: Do Kwon

Terraform Labs CEO and cofounder Do Kwon claimed on Saturday that the closure of two offices in South Korea was “purely coincidental,” and not a response to the national tax authorities’ investigation.

See related article: LKB, 5 clients file lawsuit against Terra, Do Kwon to ‘Grim Reaper’

Fast facts

  • Terraform Labs closed its two offices in Busan and Seoul after a shareholders’ meeting decision on April 30, days before the crash of TerraUSD (UST) and LUNA, which brought on speculations suggesting Kwon foresaw the collapse.
  • In a Twitter response, Kwon, who said he was currently located in Singapore, said the move was a personal decision and planned long before the actual closure.
  • Kwon added the company has paid its taxes in full and has no outstanding liabilities in South Korea.
  • South Korea’s National Tax Service collected around 50 billion Korean won (US$39 million) after a special investigation on Terraform Labs last year, which Kwon said was an industry-wide audit. 
  • The Seoul Southern District Prosecutors’ Office is reportedly reviewing Kwon and potential tax evasion charges in relation to a lawsuit filed by LUNA investors against Kwon.

See related article: Knock, knock Do Kwon, investors have quite a lot of questions for you