Do Kwon’s Terraform Labs and the many challenges they have faced since the crash of the ecosystem, are becoming increasingly difficult. Tax evasion has been brought against the founder of this project.

Terra will pay $78 million in taxes

Just days after the legal team of Terraform Labs jumped ship, Do Kwon was reportedly ordered by South Korea’s National Tax Service to pay 100 billion won (approximately $78 million) in taxes.

According to South Korean news agency Naver, the tax authorities of South Korea found Terra’s parent companies, The Ancore Company and Terraform Labs, guilty of evading corporate and income tax.

Terraform Labs Avoided Taxes by Using Singapore As Cover

According to the report released by authorities, Terraform Labs had sent LUNA from its Singapore-established entity to the Luna Financial Guard (LFG).

South Korea’s National Tax Service concluded that the movement of funds to LFG was done in order to evade taxes.

Although LFG and Terraform Labs were established in Singapore, South Korean tax authorities ruled that their “place of actual management” subjects them to pay taxes in the country.

The Flipside

• Terra is in need of some fresh air. The network validateators have validated 78% of all votesFavor the Terra chain, hard fork.

Why you should care

Terra’s tax evasion allegations only added to the pressure already placed on it by its ecosystem collapse.

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