Founder of Luna cryptocurrency token considers multi-million dollar fine a mistake

Terra co-founder Do Kwon denies the company’s activities in South Korea, which led to a $ 78 million fine last week.

He said he has been in Singapore since December last year and has never claimed otherwise. Terraform Labs has always been headquartered in Singapore," Kwon said. «The Korean branch of the company is no longer in existence, and its closure coincided with the UST scandal by chance, because the closure procedure took a long time.

Accordingly, Kwon is confident that his companies have no tax liabilities in Korea. Earlier, users on social media noted that Terraform Labs closed in South Korea a few days before the UST collapse.

According to South Korean law, companies are taxed at the place of actual management. Despite the fact that Terra’s management had international registrations, all subsidiaries were managed from Korea, the tax authorities believe, and therefore tax deductions should have been much higher than those paid.