Luna crashed, and it may take the whole Terraform Labs down with it. There are a lot of reports and rumors about some questionable acts on the part of Terra Labs management, and South Korean authorities are investigating the matters at hand.
Luna crash is maybe the beginning of the end for its father.
The South Korean authorities have summoned Terraform Labs management team for investigations.
Reports show that Terraform Labs, TerraLuna’s parent company, allegedly has committed tax evasion.
According to authorities’ findings, Terraform Labs sent Luna from its Singapore-based firm to the Luna Financial Guard.
Although both companies were founded in Singapore, tax officials based their claim on the “place of actual management”.
They considered this Luna transfer an act of tax evasion.
And that is why South Korea’s Tax Service has ordered Terra’s founder to pay roughly $78 million in taxes.
Another problem for Terraform Labs is being sued by one of the biggest law firms in South Korea.
LKB & Partners is suing Terra Labs on behalf of all the people who lost their money in Luna’s disastrous crash.
Apart from all this, a Twitter account called “Fatman” reported other accusations against Terra Labs.
Among them, we can see “rigging Mirror Protocol decentralized exchange”.
“Money laundering via a blockchain consultancy firm called Company K” that has a lot in common with Terra Labs.
Whatever the outcome of these investigations, the crypto industry should strive for more clarity .