- The Terra crew has been summoned by the Seoul Southern District Prosecutor’s Office’s financial and securities criminal investigation team to investigate the fundamental reasons behind the algorithmic stablecoin’s instability. The Terra team is being investigated by the courts to see if there was any pricing manipulation.
- There are suspicions that the National Tax Service has discovered evidence of a suspicious flow of transactions between Luna Financial Guard and Terraform Labs for tax evasion, which has thickened the investigation. Do Kwon has been forced to pay the South Korean National Tax Service US$78 million as a severe tax evasion penalty.
- According to reports, the South Korean government will organize a committee to investigate Terraform Labs and Terra employees by the end of June 2022. The committee will concentrate on developing guidelines for itemizing, crypto investor safety, and disclosures. Is Kwon’s blunder forcing South Korea to enact stricter crypto legislation in the future.
Despite being the most popular stablecoin, Terra (LUNA) has startled the entire global cryptocurrency market with its dramatic price drop. The abrupt instabilities in the stablecoin have caused many repercussions for Terra, including Do Kwon, the Founder, and the whole Terra team. Meanwhile, South Korea has opened a complete investigation into LUNA token tax evasion and other legislation, as well as the loss of millions of cryptocurrency investors. It is undeniable that Do Kwon made faults in the creation of the Terra blockchain and ecosystem, but the Terra team is currently being investigated by the authorities.
Do Kwon Has Been Forced To Pay The South Korean National Tax Service US$78 Million As A Severe Tax Evasion Penalty
The Terra crew has been summoned by the Seoul Southern District Prosecutor’s Office’s financial and securities criminal investigation team to investigate the fundamental reasons behind the algorithmic stablecoin’s instability. The Terra team is being investigated by the courts to see if there was any pricing manipulation. Despite the fact that LUNA project personnel said that they had alerted Do Kwon about the pilot model failure, he persevered with the stablecoin project.
The investigation team wants to know if Do Kwon and other Terra officials were negligent, and if this has resulted in millions of crypto investors being harmed as a result of their investment in this stablecoin. There are suspicions that the National Tax Service has discovered evidence of a suspicious flow of transactions between Luna Financial Guard and Terraform Labs for tax evasion, which has thickened the investigation. Do Kwon has been forced to pay the South Korean National Tax Service US$78 million as a severe tax evasion penalty.
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The South Korean Government Will Organize A Committee To Investigate Terraform Labs And Terra Employees
The South Korean authorities have also urged Terra employees to hand over any relevant documents, information, or materials. Even though there was a concern about Terra’s (LUNA) long-term viability in this very unpredictable cryptocurrency market, Do Kwon remained adamant about moving forward. They’re looking at price manipulation and the listing process on numerous cryptocurrency trading platforms.
According to reports, the South Korean government will organize a committee to investigate Terraform Labs and Terra employees by the end of June 2022. The committee will concentrate on developing guidelines for itemizing, crypto investor safety, and disclosures. Is Kwon’s blunder forcing South Korea to enact stricter crypto legislation in the future?
Source: https://www.thecoinrepublic.com/2022/06/03/do-kwon-made-a-mistake-but-terra-staff-face-legal-scrutiny/