ASouth Korean authorities have uncovered a fraudulent company called Flexi that Do Kwon is accused of using to defraud money from Terra.
In connection with the collapse of the Terra ecosystem, which resulted in thousands of South Koreans losing money, investigators and prosecutors in South Korea are getting closer to compiling a solid case against Terra’s Do Kwon.
Officials have found a fictitious company that was used to transfer money from Terra to accounts belonging to Do Kwon, a recent discovery that is sure to strengthen the resolve of investigators and the courts.
The entire crypto space knew Do Kwon solely owned TFL up until this point. Whereas, TFL stopped doing business in South Korea in April 2022.
Officials suspect money laundering
Additionally, it emerged that a fictitious company called Flexi Corporation is still active in South Korea and was involved in a scheme to steal money from Terra.
It’s interesting that the firm simply exists as a document, which gives it all the characteristics of a shell company. The information that Terra got money through token sales conducted over the counter is even more intriguing.
To exchange tokens for cash, Flexi Corporation was employed.
Additionally, the company uses accounts that were made in the names of dubious corporations. While South Korean officials continue to look into the Terra crash incident to see if Do Kwon, his firm TFL, and associates did anything unlawful, this revelation has already been discovered. It’s difficult to see how Do Kwon could escape responsibility given these revelations.
Speak Up: Former Terra Developer
Prosecutors are reportedly keeping track of the money flowing into the shell company after it was blown up, potentially in an effort to gather more evidence to support the case against Do Kwon. Since Flexi Corporation is a front company and money has been transferred to it through over-the-counter sales, this action constitutes money laundering.
On the other hand, during a previous tax-related probe, the Korean tax authorities expressed significant concern about Flexi Corporation, according to a former Terra developer who spoke out. Due to tax evasion, Do Kwon and TFL must also pay fines to the government of almost $80 million.
