Prosecution ‘Investigating Still-Extant South Korean Terraform Subsidiary’, Exchanges Make Self-regulation Proposal
South Korean prosecutors have reportedly uncovered evidence of an obscure Terraform Labs subsidiary that appears to exist only “on paper.”
Terraform, the company behind the LUNAC token, the UST stablecoin, and the new LUNA coin, shuttered its South Korean businesses back in April. But per an exclusive TV news report from the South Korean national broadcaster KBS, prosecutors have found information about a firm named FLEXE Corporation.
Documents filed by the company appear to list Do Kwon, the CEO of Terraform Labs, as FLEXE’s sole executive director. The documents also appear to show that the company is still operational.
A search on Naver, South Korea’s answer to Google, appears to indicate that a firm named FLEXE Corporation is based in the Seocho District of Seoul, in the same building as a company that helped fund Terraform’s foundation.
A KBS reporter visited the address listed as FLEXE Corporation headquarters in the documents. But the reporter was told that there was no such company in the building. A building manager told the reporter that they had never heard of FLEXE Corporation, and that they could find no record of a FLEXE Corporation ever having occupied a space in the building.
KBS explained that prosecutors were “closely” looking into “suspicious” flows of money through the company. It remarked that FLEXE was likely a so-called “paper company.”In 2019, company records appear to indicate that payments of USD 4.5m and USD 9m were made from the Terraform HQ in Singapore to what appears to be a shell company in the Virgin Islands. The alleged shell company later made payments of USD 9 million to FLEXE and another firm.
An unnamed former Terra developer was quoted as stating that “the flow of money through FLEXE
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