terra founder Do Kwon and LUNA The collapse of the token has been the hottest topic since the beginning of this month.
After proposing a revitalization plan for the chain, Kwon finally provided answers that cleared up some of the ambiguities.
“Terra Controls 0.1% of LUNA Supply, We Can’t Burn Tokens”
Do Kwon spoke about the Internet reports that he had traveled to another country just days before the collapse. Kwon said he has been living in Singapore since December 2021. According to Kwon’s statement, this was a long-planned and personal decision.
Meanwhile, he also noted that Korea has zero crypto taxes and a much cheaper cost of living. He added that he has spoken on this subject in many podcasts and interviews.
I’ve been in Singapore since last December – this is a personal decision and has long been planned. I’ve been open about being located in Singapore across multiple interviews and podcasts
Shutting down a company just takes some time, and timing is purely coincidental
— Do Kwon 🌕 (@stablekwon) May 21, 2022
Kwon said it takes a long time to shut down a company, and the timing between it and the crash was purely coincidental.
However, he also explained that they control less than 0.1% of the LUNA supply, so it is difficult for them to burn tokens to help the community.
Is Terra Avoiding Taxes?
Terra’s founder said his company has no unpaid tax liability in South Korea.
The country’s National Tax Agency had conducted an audit among all crypto companies. According to Kwon, Korean tax law applied to every foreign company, and Terra paid her taxes in full.
According to reports, the South Korean tax authority is after to collect about $78 million in taxes from the Terra founder. It was also reported that Terra was dissatisfied with the country’s taxation policies.
Denying the reports, Kwon claimed that these were just interesting rumors. Meanwhile, he also stated that the Korean government needs the money to sustain its Covid spending.
According to Kwon, the South Korean administration cryptocurrency collected millions from his companies, and Terra paid his share.
*Not investment advice.