Will Terra Founder Do Kwon Be Held Accountable Following Three South Korean Investigations?

Terra Founder Do Kwon is falling deep into investigations.

So a question arises Will Terra Founder Do Kwon Be Held Accountable Following Three South Korean Investigations?

South Korean congress Summons Terra Luna’s Do Kwon

A few days ago, the South Korean congress ordered the Terra Luna’s Do Kwon to be brought before the lawmakers to answer questions about the recent crash of UST and Terra Luna.

Around 200,000 South Koreans fell victim to the crypto’s price crash as Luna, crypto that was once among the top 20 best, saw its market cap dip from $18 billion to almost nothing. Just last month, Luna was trading at over $115. Today, the coin is valued at just $0.00014.

Now, it appears that another pandora’s box is about to blow up against Do Kwon. Recent reports indicate that the Terra founder is currently being investigated for tax evasion. Apparently, Do Kwon and Terra are in for a rough ride involving them and the National Tax Service of South Korea.

Terra and Kwon To Pay $78 Million In Taxes

The tax evasion allegations leveled against Do Kwon and Terra Labs amount to a whopping $78 million to be paid to the tax authorities. Interestingly, Do Kwon has already dissolved Terraform Labs from existence in South Korea and moved its operations to Singapore.

Some people have speculated that he probably knew what would happen to the Terra ecosystem because he did this right before the market crash. Reports also indicate that Do Kwon owns 92% of Terra Labs, meaning he’s the one to pay up.

This may be one of the reasons that lawmakers now want Do Kwon to appear before them and explain how Terra Luna and UST tanked and led to the loss of billions of dollars. For one, the 84,000 BTC that was meant to support Luna and UST’s price was depleted, yet the cryptos continued to crash. UST was de-pegged from the USD due to its extreme volatility and price dip.

Crime Investigation Unit Revived

Following the Terra incident, the South Korean government has revived a criminal investigations unit that was previously disbanded two years ago. The department, consisting of around 40 people, will be tasked with digging up information to find out what exactly happened to the Terra crypto ecosystem and whether Do Kwon is responsible for the losses incurred by hundreds of thousands of people across the world.

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