South Korea’s FLEXE Corporation, a subsidiary of now-collapsed Terraform Labs, reportedly helped Terra affiliates receive funds from overseas.
According to a KBS report, after visiting the registered address, FLEXE corporation was found to be a non-operational paper company with no actual presence in its supposed building.
Kwon Do-Hyung, the CEO of Terraform Labs, is the only internal director of FLEXE Corporation, as per the report.
Authorities claim to have traced cash flows totaling 6B Korean won, about 4.5M dollars, and 12B won, roughly 9M dollars, that originated in Singapore and traveled through the British Virgin Islands before arriving at FLEXE in South Korea and other Terra affiliates.
FLEXE Corporation was used as a conduit to receive money from liquidated cryptocurrencies, and KBS stated that a former Terraform Labs employee claimed FLEXE was the cause of problems during the company’s 2017 special tax examination.
A prosecutor at the Seoul Southern District Prosecutors’ Office was unable to confirm or reject the allegations relating to the ongoing investigation.
Last month, following the infamous crash of Terraform Labs’ stablecoin TerraUSD, South Korean authorities banned Terra’s main designers from leaving the country.
In May, South Korean authorities launched an investigation to assess Terra’s fall to suspect its price manipulation angle. Before that, South Korea even revived the Yeouido Grim Reaper special criminal team to investigate Terra’s ultimate demise.
