Terraform Labs allegedly laundered $4.8 million

National television station Korea KBS News reported on May 30, the National Tax Service of Korea discovered that Terraform Labs had transferred 6 billion won (about 4.8 million USD) in a complicated scheme for “KY blockchain consulting firm” is based in the capital, Seoul, and reports it as “another expense”.

A former developer revealed that Terraform Labs is related to “company K” (Company K), which is operated “under a name borrowed from Terra”. According to office workers, the workspace was also named “Terra” in the building’s floor plan, but was later dropped.

The Korean National Taxation Office discovered that Terraform Labs had transferred 6 billion won “blockchain consulting firm K” Screen capture

Terra’s plot is getting thicker

FatManTerra, Twitter account described as Terra Research Forum, has conducted a number of studies, confirming that there is indeed a connection between Terraform Labs and “K Company”. Specifically, FatManTerra demonstrated a connection between “Company K” and Kernel Labs, which is said to have been set up by the same people who created Terraform Labs. It is known that Korean tax officials once fined Terraform Labs after noticing suspicious transfers to Kernel Labs.

FatManTerra thinks that “Company K” is likely Kernel Labs Screen capture

Other alleged violations

This is not the first time FatManTerra, a familiar source of information leaks in the industry electronic money, conducts in-depth investigations into the Terraform Labs ecosystem. Late last month, FatManTerra accused Do Kwon of fraud conducted through Mirror Protocol (MIR) tokens.

Terra’s demise has resulted in the South Korean authorities taking a harsher stance towards cryptocurrencies. The country has established a “Digital Asset Commission” to focus on strict crypto regulations.