S. Korea Probe Tightens Noose Around Do Kwon Probe

In the middle of various legal encounters and regulatory pressure, the situation around Terra continues to only worsen. The company has attracted multiple cases of legal scrutiny both in the U.S. and South Korea. Ever since Terra network’s crash last month, regulatory measures around Do Kwon probe had intensified.

Korea Prosecutors Seize Terra Tax Data

In a latest, the South Korean prosecutors have reportedly seized and searched the National Tax Service to secure data. According to a report by Korean news portal SBS, the prosecutors began full-scale probe into allegations of tax evasion against CEO Do Kwon.

The report added that the data was procured by the joint financial and securities crime investigation team of the Seould police. Last year, the country’s national tax service (NTS) discovered a suspicious flow of money from an overseas corporation created by Kwon. The suspicion had at the time led to the launch of a tax investigation.

The SBS report stated that the NTS later confirmed Kwon’s involvement in hiding his profits from coin trading. The funds were reportedly transferred from Singapore to the Virgin Islands in a bid to avoid taxes.

Flow Of Funds From Terra

Also, the prosecutors, while inspecting the documents, are said to be looking for Kwon’s alleged involvement in transferring Terra’s funds. In a separate case, the SEC found about 100 billion won of company funds to have been embezzled every month. The funds were transferred for operating expenses few months before the Terra network collapse.

The SEC had found internal evidence on the transfer of money into several dozens of cryptocurrency wallets. However, Kwon’s involvement was yet to be oroved as he had received any money personally.

Last week, the Seoul Metropolitan Police Agency arrested a Terraform Labs employee for allegedly stealing 80 Bitcoin. The stolen BTC was said to be worth around $2.39 million.

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