Do Kwon owes over $78 million in taxes to South Korea’s tax authorities

Taxes demand 100 billion won in taxes from Do Kwon

According to Hankyung, a South Korean media outlet, the country’s tax department has demanded 100 billion won from Do Kwon, or more than $78 million at the current exchange rate. This is additional bad news for blockchain founder Terra (LUNA) after the catastrophic events of the past week.

The decision follows an investigation by the tax authorities. According to the latter, although Terraform Labs and the Luna Foundation Guard (LFG) have been registered in Singapore, this is not enough to qualify them as foreign companies. Indeed, since these were mostly administered from South Koreait is then this geographical location that is taken into account.

In addition, the way in which the LFG reserves were fed will also subject to review. Its supply of Bitcoin (BTC) could, in fact, come under a transfer free of charge and thus constitute a taxable event.

👉 To go further – Find our guide on Waltio to help you with your tax return

Suspicions of tax evasion

Do Kwon is also suspected of tax evasion attempt. This in particular, because on May 4 and 6, the headquarters of Terraform Labs in Busan and a branch in Seoul were liquidated, and this a few days before the events that we know.

Faced with all this chain of events, Terra’s legal team chose to give one’s resignation and a South Korean law firm also filed lawsuits after the ecosystem collapsed.

As the dust from the explosion is barely settling, we are entering a time when voices will come out of the silence, and regulators will come take measures to protect consumers.

👉 Also in the news – The consequences of the collapse of the Terra (UST/LUNA) ecosystem for the crypto industry

Source: Hankyung, Image: LinkedIn

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About the Author : Vincent Mayor

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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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