On Saturday, the crypto space discovered that Terra Labs CEO Do Kwon closed his company’s headquarters and sole branch in Korea days before the collapse of the Terra ecosystem.

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First reported by South Korean news outlet Digital Today, information obtained from the country’s Supreme Court Registry Office disclosed that Do Kwon initiated the liquidation of two branches and an entire company.

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According to the documents, Terraform Labs Korea decided to dissolve both its Busan headquarters and Seoul offices at a general shareholders meeting on April 30th. The company named Do Kwon as the liquidator.

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The timing of these decisions quickly raised suspicion on social media, as they came a little over a week before the collapse of the Terra protocol’s native staking token, LUNA, and its stablecoin, TerraUSD (UST), on May 7th.

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If you think the suspicious news stops there, you’re sadly wrong. A recent media report claims authorities in Korea were investigating Do Kwon and Terraform Labs over $78 million in unpaid corporate taxes. Over the weekend, the CEO responded to the acquisitions on Twitter:

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“We have no outstanding tax liabilities in Korea,” Do Kwon stated, adding that the company paid its dues in full after facing a tax audit from the National Tax Service.

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“Happy to engage with any lawsuit or regulatory inquiry to the best of our ability - we have nothing to hide,” he went on to share.

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