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What happened? According to the South Korean edition of KBS News, Terraform Labs (TFL) laundered $ 4.8 million through a shell firm in Seoul, which allegedly provided consulting services in the field of blockchain technologies. The National Tax Service noted that TFL transferred funds to a certain company “K”, reporting this transaction as “other expenses”.
Material KBS News
What is known about the company? According to one of the former developers of Terra, the shell company was managed on behalf of TFL and was associated with its head Do Kwon. It is also reported that on the floor plan of the building, the office of this company was designated as “Terra”. This mention has now been removed.
What events have happened before? On May 28, Do Kwon announced the launch of the new Terra 2.0 blockchain and the distribution of LUNA tokens.
A detailed chronology of events around the creation and launch of the network can be found in the article GetBlock Magazine.
On June 1, the head of Binance, Changpeng Zhao, instructed the investigative team of the cryptocurrency exchange to study the accusations made by an insider under the nickname FatMan against Do Kwon. FatMan claims that the Terra team, including validators, manipulated the tokenomy of its asset in order to change the situation on the market, and also conducted insider trading.
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