{"id":4602,"date":"2022-06-01T10:04:21","date_gmt":"2022-06-01T10:04:21","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=4602"},"modified":"2022-06-01T10:04:22","modified_gmt":"2022-06-01T10:04:22","slug":"terraform-labs-caught-moving-4-8m-through-shell-company","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4602","title":{"rendered":"Terraform Labs caught moving $4.8M through shell company"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/> \ud83d\udc4b Want to work with us? CryptoSlate is hiring for a handful of positions!<\/p>\n<p>It appears that Do Kwon may be in for more legal trouble as allegations arise accusing him of further financial crimes.<\/p>\n<p>FatManTerra, who seemingly never sleeps, has released information tying Do Kwon to a blockchain consultancy firm Kernel Labs. Money has allegedly been Korean news site also reported on the news stating,<\/p>\n<p>\u201cNational Tax Service was caught by the fact that last year, Terra received a virtual currency worth about 6 billion won from Terra.\u201d<\/p>\n<p>Do Kwon was fined last year for tax evasion and ordered to pay 100\u00a0billion\u00a0won ($80M)\u00a0in\u00a0taxes. The amount is expected to rise over time as only realized gains are taxed for cryptocurrency in South Korea. The new allegations suggest that this is not the only crime for which he is now being investigated.\u00a0<\/p>\n<h2>Terra\u2019s legal woes<\/h2>\n<p>Given the increasing number of legal battles on the horizon for Terraform Labs and Do Kwon, it is even more disconcerting that the entire Terraform Labs\u2019 legal team reportedly resigned in a mass walkout last week.<\/p>\n<p>The latest allegations suggest that Terraform Labs\u2019 sister company, Kernel Labs, received 6 billion won ($4.8 million) from Terraform Labs. While this could be a completely innocent transaction for consulting services, the recent actions of Do Kwon to remove any association of himself to Kernel Labs makes the transaction appear suspicious.<\/p>\n<p>The Korean news outlet KBS used a pseudonym for Kernel Labs, calling it \u201ccompany K. However, there are references to Kernel Labs several times alongside Terraform Labs, suggesting it is the company in question.<\/p>\n<p>The official identity of the company, as reported by KBS, cannot be confirmed at this time, but Kernel Labs will be cited according to the allegations of our sources. Further, there is evidence linking Do Kwon to Kernel Labs through patents filed by the company. In addition, KBS reported the news in the following manner,<\/p>\n<p>\u201cThis is a blockchain consulting firm K in Seongsu-dong, Seoul.<br \/>The office with the lab sign is full of computers.\u201d<\/p>\n<h2>Company K and Do Kwon<\/h2>\n<p>It may be reasonable to assume that KBS was attempting to leak the name without saying it outright, \u201cConsulting firm K\u2026office with the lab sign.\u201d Further, Do Kwon amended the original Luna Revival plan to remove reference to Kernel Labs in a highly suspicious move.<\/p>\n<p>A section that identified roles and responsibilities for the new Luna blockchain contained a reference to \u201cTFL\/Kernel Labs\u201d but has since been amended to remove the reference to \u201cKernel Labs.\u201d Image 1 below is a cached version of the original proposal quoted in a user\u2019s comment. Image 2 is the revised proposal as it currently reads.<\/p>\n<p>Image 1 \u2013 Source: TerraStationImage 2 \u2013 Source: TerraStation<\/p>\n<p>According to KBS, Terra and Kernel Labs appeared indistinguishable to locals, reporting, \u201cemployees in a nearby office also say they looked like the same company as Terra.\u201d KBS also reported that they attempted to speak directly with several members of Terraform Labs,<\/p>\n<p>\u201call of whom declined to answer, saying, \u201cOnly a small number of people, including CEO Kwon Do-hyung, know the true nature of Terra and Luna.\u201d<\/p>\n<p>The fascination with the Terra collapse is likely to continue as more skeletons come out of the closet daily. The story is indeed not over, and <em>CryptoSlate<\/em> will be sure to keep you informed of all the latest developments.<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/terraform-labs-caught-moving-4-8m-through-shell-company\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udc4b Want to work with us? CryptoSlate is hiring for a handful of positions! It appears that Do Kwon may be in for more legal trouble as allegations arise accusing him of further financial crimes. FatManTerra, who seemingly never sleeps, has released information tying Do Kwon to a blockchain consultancy firm Kernel Labs. Money has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-4602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4602"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4602\/revisions"}],"predecessor-version":[{"id":4604,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4602\/revisions\/4604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4603"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}