Terra’s fate in the recent times has been poor in the crypto sphere.
Terraforms lab, which was founded by Do Kwon, appears to be in a soup which is getting more and more hot as the day passes by. We all know, that the market collapse on May 12th, caused a catastrophic result for Terra where in, the stable coin UST and its sibling cryptocurrency Luna lost almost 99% of their value, coming down from a high of almost $120 to a meagre $0.0009 in a day. The loss in value of the currencies wiped out a billion of dollars of the investors in thin air. The situation for Terra was already looking fatal, when the news about Do Kwon, participating in the activity of Money Laundering struck. This news is only going to add salt to the injury which already looks like deep and shattered.
Terraforms Lab trapped in Money Laundering? Let’s see.
FatmanTerra, which consistently reports information about Terra, recently released an information which said that, Do Kwon was actively participating in moving money amounting to $4.8 Million through a shell company.
This is not the first time Do Kwon is in a legal mess. Last year, Do Kwon was fined heavily for committing the crime of Tax Evasion. Even after being asked by the authority to pay the taxes and found guilty of tax evasion, Do Kwon continued to participate in many other financial scams.
Do Kwon caught in Legal web!
The latest legal allegations of Do Kwon suggest that, terraforms sister company called Kernel Labs received around $4.8 million from Terraform Labs. In hindsight, this transaction could be a legal and formal one for consulting services, but the recent allegations and actions of Do Kwon makes us think otherwise.
The sister company was being named as Company K and there were many instances when company k has referred with Terraforms several times putting the company in question.
Company K and Do Kwon!
Do Kwon’s Terraforms has consistently been referred to company k in the past few weeks. As the matter gets more intense, it is getting more interesting to learn about Do Kwon’s unethical practices. After the market crashed, terraforms under the guidance of Do Kwon came up with a revival plan for Luna calling it Luna 2.0, which was also used as a plan to erase the references with Kernel Labs or company K, which leaves the investors, and exchanges really suspicious.