Terra Subsidiary Used as Funds Channel for Overseas Affiliates: Report

Jul 15,2022
KingData News: Korean prosecutors have reportedly identified what is believed to be a Terraform Labs subsidiary in South Korea, FLEXE Corporation, which was allegedly used to facilitate cash flow from overseas to Terra affiliates, according to KBS News. Terraform Labs chief executive officer (CEO) Kwon Do-hyung, otherwise known as Do Kwon, is listed as the only internal director of FLEXE Corporation, according to KBS. Prosecutors have determined that 6 billion won (about $4.5 million) and 12 billion won (about $9 million) of the company's cash flow came from Terra's Singapore company.
This indicator provides follow-up on the depg of Terra's stablecoin UST on May 8th. Terra's stablecoin UST briefly lost its peg to the U.S. dollar on May 8th, dipping as low as $0.985. The depeg event came after a series of multi-million dollar UST selloffs as one account traded about $85 million worth of UST for USDC on Curve Finance, while another user reportedly sold $108 million worth on Binance. UST posted a slight recovery shortly after Terraform Labs CEO Do Kwon posted a tweet calling out the stablecoin's critics.