Money laundering charges for Terraform Labs
Money laundering charges for Terraform Labs
Crypto

Money laundering charges for Terraform Labs

By Vincenzo Cacioppoli - 3 Jun 2022

Chevron down
Listen this article
download

According to rumours, Terraform Labs is accused of money laundering of $4.8 million.

Terraform Labs and the laundering of approximately $5 million

 earth money laundering
In addition to being a huge Ponzi scheme, Terra is also likely to be accused of money laundering

According to the Korean online newspaper, Kbs online, the company Terraform Labs, which founded the Terra project, which collapsed dramatically a few days ago, allegedly laundered $4.8 million through a South Korean shell company.

According to the newspaper’s investigation, a Korean broker reported that the company had set up a subsidiary in South Korea a few months ago, whose sole purpose was to launder a large sum of money.

The company would be called Blockchain K, based in Seongsu-dong, near Seoul. If these allegations were proven, new scenarios would open up concerning the real reasons for the project’s failure. 

Many argue, in fact, that Terra’s failure was largely predictable, and someone like the CEO of venture capital firm Blockchain Coinvestors, Lou Kener, has advanced the hypothesis that the whole project could have been one big Ponzi scheme.

Kerner said:

“It was a Ponzi strategy. They [Terra] said exactly what they were doing so you could see what they were doing and you could see how it would unravel eventually. You didn’t know when, but you knew at some point that it would unravel”.

The collapse of the entire Terra project was already foreseen

Jeremy Allaire, CEO of Circle, the company behind the second largest stablecoin, USDC, also agrees with this thesis. Last week, Allaire told a public meeting that his team had predicted Terra’s collapse six months ago, calling it a “house of cards” destined to fail.

The CEO of the Korean company rejected the allegations, saying that his company is responsible for developing the Terra project, which allegedly received 6 million Korean won last year, the origin of which the Korean revenue service is now investigating.

There is also a second report that speaks of precise connections between the Korean company K and Kerner Group, a company linked to the Terra project. This connection could give more substance to the allegations of money laundering. The collapse of the project and its associated UST stablecoin, caused a $60 billion hole, resulting in a real earthquake on the cryptocurrency market.

Now the time has come for the people behind all this to face their fate, should it be confirmed that the project was built like a sandcastle from the outset, with the sole purpose of making a few people at the top earn money, as in the most classic Ponzi scheme.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.