Do Kwon could have created a front company to make money movements easier. That other company is presenting itself as a “blockchain consulting” company.
Terraform Labs would have irregular assets for USD 4.8 million through a shell company. After a journalistic investigation, this conclusion was reached by the television network KBS, from South Korea.
According to KBS, the founder of Terra, Do Kwon, would have transferred 6,000 million won to an entity focused on “blockchain consulting” in Seoul’s capital.
After investigating the matter, KBS maintains that this consulting company (identified as “K”) would be a frontal entity. His true goal would be to make some financial activities easier for Do Kwon’s entity.
Accusations Denied
However, the CEO of “K,” Mo Kim, denies the accusations of being a subsidiary of Terraform Labs. He explained that they made the previous contact with Terra developers on occasion, but he said they are just working as a consulting entity.
This argument appeared to be suspicious to KBS reporters. One developer, who remained unidentified, said that Company K was an entity that carried out its activities under a name borrowed from Terra. According to South Korean media, this informant would have been part of the Terra project.
Also, other anonymous sources confirmed to the South Korean media that both entities worked in parallel as the same entity.
The possible identity of company “K”
An Internet forum user, well known in the Terra user community and identified as FatMan, said that company “K” is Kernel Labs.
He justifies this statement with the theory that “Terraform Labs is furiously trying to step away from that company. As per the sample, mentions of Anchor and Mirror (Terra’s 2 DeFi protocols) got removed from the Kernel website on May 18.
Kwon Might Be Sitting on the Dock
After the crash of terra USD (UST) and Terra (LUNA), cryptocurrencies of the Terra ecosystem-affected investors began the group to confront Do Kwon legally.
Even the South Korean state itself could become a plaintiff. Deputy Yoon Chang-Hyeong, a member of the Political Affairs Commission of the National Assembly, proposed summoning Do Kwon to Parliament.
At the moment, the only procedure applied has been a “clean slate.” On May 28, the network got re-released under the name Terra 2.0. So far, it is unknown what direction this blockchain will take since it will no longer receive support from native stable coins.
By: Jenson Nuñez
