Mystery South Korean Company that ‘Worked on Terra Network’ Faces Media Scrutiny

Mystery South Korean Company that ‘Worked on Terra Network’ Faces Media Scrutiny
A snapshot of the report on Terra by KBS. 

South Korean media retailers say they’ve unearthed proof that a blockchain agency based mostly in Seoul has a detailed relationship with Terraform Labs – and should have been growing for the Terra community beneath the radar. But the plot might have already got thickened – with allegations that the National Tax Service (NTS) discovered proof of a “suspicious flow of transactions” between the agency and Terraform Labs when it investigated the corporations final yr.

In TV reviews from the cable community JTBC and KBS, South Korea’s nationwide broadcaster, reporters offered proof – within the type of paperwork, video footage, audio, and interviews that appeared to level to a good relationship between a “blockchain company” named for authorized causes solely as Company Ok and Terraform. The latter liquidated its Busan and Seoul operations in late April/early May and is formally based mostly in Singapore, the place it was based in 2018.

Scrutiny of Terraform has been intense in South Korea since terra (LUNA) (now LUNA traditional or LUNC) crashed earlier this month, with the terraUSD (UST) stablecoin shedding its peg.

But the media retailers claimed that the proof prompt that Company Ok’s builders had been persevering with work on the Terra community in secret – and that the connection between the corporations has been tight for a while.

KBS, which has been in touch with an alleged whistleblower, stated it had found proof of a “special relationship” – pointing to “internal documents” allegedly offered by “an employee who worked for Terra while employed by Company K.”

The English-language paperwork are apparently a part of a contract workers had been obliged to signal with Terraform Labs PTE. The doc, titled as a “contractor agreement,” was additionally reportedly signed by Terraform’s Co-founder Do Kwon.

Kang Hyung-seok, a former Terraform worker, advised KBS:

“Company K is on the same floor as Terraform Labs, in the same building. [Employees] use the same door entry card to access the offices.”

KBS added that workers’ salaries had been paid “from both Company K and Terraform Labs.”

An nameless developer, who was reportedly concerned in “a major Terra project,” said:

“The two companies were virtually one.”

The developer added that confidential Terra paperwork had been probably nonetheless to be present in Company Ok’s places of work.

Further, each KBS and JTBC reported that throughout a National Tax Service investigation final yr, the developer claimed that a lot of the paperwork weren’t discovered or submitted.

The present CEO of Company Ok reportedly denied the allegation. The CEO confirmed that Company Ok had “collaborated with companies that make use of blockchain technology – including Terraform,” however added that the agency didn’t have any “internal data on Terra.”

KBS reported that Company Ok’s CEO, recognized solely by his surname (Kim), was a “lead developer” on the core Terra “project.”

In a separate report, KBS confirmed footage from the within of Company Ok, which appeared to have been abandoned throughout working hours, though there was proof of latest exercise contained in the places of work.

The JTBC report, nonetheless, confirmed a Company Ok developer on website, who briefly advised a reporter that his firm was only a growing agency and that the media “won’t get anything from us.”

Other builders had been filmed apparently working at their desks.

Employees in an workplace based mostly in the identical constructing stated that to exterior observers, Company Ok and Terraform “appeared to be the same company”

A close-by workplace employee said:

“[On the building’s floor map], the space was just marked out as being ‘Terra.’ Terra logos were on display there. Now they are gone.”

The JTBC report contained additional allegations that an NTS investigation had “discovered a suspicious transaction flow between Company K and Terraform Labs” – and that the company had realized that the CEO of Company Ok had “received about USD 4.8m worth of cryptocurrency from Terra.”

However, it seems that the NTS’ probe “only” resulted in a tremendous for Terraform Labs, which it claimed had evaded taxation and “took no action” on the opposite “suspicious” transactions.

JTBC reported that prosecutors will probably choose up the path – and examine on suspicions that the transaction might have been processed in a bid to “artificially increase” the worth of a Terra ecocystem token.

Company Ok advised South Korean media retailers:

“We only worked on a project with Terraform Labs. Terraform is a separate company.”

Both media retailers stated that they had requested Kwon for remark however had not obtained any reply. has additionally contacted Terraform with a request for clarification.

KBS claimed it had tried to contact 4 different senior Terra builders and executives, all of whom had declined to remark, though they appeared to have indicated that “just a few individuals, together with Do Kwon” know “the true nature of Terra and LUNA.”

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