Do Kwon Owns Terra’s Secret Subsidiary

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Last Updated on July 16, 2022 by Bitfinsider

It doesn’t seem like the Terra disaster is over. 1 According to KBS News, South Korean prosecutors purportedly found a Terraform Labs subsidiary. The firm, known as FLEXE Corporation, is accused by the prosecution of facilitating the transfer of funds from abroad to Terra associates. Following the widely reported collapse of Terraform Labs, authorities in South Korea began investigating the situation in May.

The only internal director of FLEXE Corporation is Kwon Do-hyung, also known as Do Kwon, the CEO of Terraform Labs, according to KBS. According to reports, the so-called corporation merely exists on paper.

A search on Naver, the South Korean version of Google, appears to indicate that a company by the name of FLEXE Corporation has its headquarters in Seoul’s Seocho District, in the same building as a business that helped support Terraform with contributions from the foundation.

A KBS reporter stopped by the location of the FLEXE Corporation’s headquarters. The reporter was told, however, that such a business was not housed in the building. A management of the building said to the reporter that they had never heard of FLEXE Corporation and couldn’t find any proof that the business had ever rented space there.

Authorities claim to have followed cash transfers totalling 6 billion Korean won ($4.5 million) and 12 billion won ($9 million) that left Terra’s Singapore base. Before being distributed to FLEXE in South Korea and other Terra affiliates, the monies first travelled to Terra’s office in the British Virgin Islands.

KBS claims that the business served as a conduit for the funds received from bitcoin liquidations.

Rumours abound that Flexe deals in crypto that are rarely announced by crypto exchanges. According to a former Terra developer, Flexe Corporation’s cash flow was an issue during a special tax investigation by the National Tax Service last year.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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