The Terra fiasco doesn’t seem to end. According to a local news outlet of KBS News, South Korean prosecutors have found a subsidiary of Terraform Labs. The company is called FLEXE Corporation and prosecutors say it enabled cash flow from overseas to Terra affiliates. South Korean authorities began their investigation in May, following the much-discussed fall of Terraform labs.
According to KBS, the company was a non-operational paper company. However, upon visiting the registered address, the investigators discovered that the company was not physically present in the building. In addition, the company mentions the CEO of Terraform Labs Do Kwon as sole internal director of the company. The so-called company reportedly only exists on paper.
Detectives immediately began tracking down the money. Money tracking is a common practice in scams and theft. Authorities claim to have traced financial flows totaling 6 billion Korean won (about $4.5 million) and 12 billion won (about $9 million) originating in Terra’s Singapore base. The money then went to their British Virgin Islands office before arriving at FLEXE in South Korea and other Terra affiliates.
KBS said the company served as a conduit for receiving funds from cryptocurrency liquidations. A former Terraform Labs employee also noted that FLEXE had interfered with the company’s special tax audit the year before.
The Public Prosecution Service has just joined the investigation team together with the Financial Investigation Department. The Financial Crimes Department of the Public Prosecution Service in Seoul’s South District has been in charge of Terra.
The now-fallen company’s problems seem endless. Director Do the actions of Kwon have been extensively discussed. The infamous hacking group, Anonymous, also released a video affirming that Kwon would be brought to justice.
At the time of going to press, Terra’s old coin, called TerraClassic (LUNC), was trading at $0.00010880, up 18.9% in 24 hours.