Terraform Labs has no tax liabilities in Korea, Do Kwon says

Tax • May 21, 2022, 9:41AM EDT

Do Kwon, CEO of Terraform Labs, said today on Twitter that contrary to reports, his company has no tax liabilities in South Korea.

Terraform Labs is the core development team working on the Terra blockchain whose native assets, LUNA and UST stablecoin, recently collapsed after a bank run that wiped out billions of dollars of value .

A recent media report suggested that authorities in Korea were investigating Kwon and Terraform Labs in more than $78 million in unpaid corporate taxes. When questioned on Twitter by FatMan, an anonymous Terra analyst and commentator, about the accuracy of the reports, Kwon responded.

“We have no outstanding tax liabilities in Korea,” he said, adding that the company had already paid its dues in full after it faced a tax audit.

“Happy to engage with any lawsuit or regulatory inquiry to the best of our ability - we have nothing to hide,” Kwon added.

Besides his comment on the company’s taxes status, Kwon said that his precise location has been Singapore since December 2021.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]