South Korean prosecutors: Do Kwon diverted token trading profits to tax havens

06/15 13:28

South Korean prosecutors have also launched a full investigation into Do Kwon's tax evasion allegations. South Korean prosecutors have raided the National Tax Service to seize documents related to an investigation into Do Kwon's tax fraud. Documents from the IRS's tax investigation of Do Kwon found that since June last year, the IRS had uncovered suspicious flows of funds to an overseas company founded by Do Kwon and opened a tax investigation. Afterwards, the National Revenue Service confirmed that Do Kwon stole the token trading profits of his Singapore company to the tax haven Virgin Islands and collected 50 billion won in taxes including income tax and corporate tax. However, the IRS did not file a complaint with prosecutors, and the facts of the special tax investigation were released later through media reports. While analyzing the seizure and search data, prosecutors are actively verifying Do Kwon's "tax evasion allegations" and the flow of funds to Terraform Labs. At the time, as an investigation by the Internal Revenue Service revealed alleged evasion of gift tax, such as Do Kwon donating tokens to his family to buy an apartment, it was planned to investigate this part again. It was also confirmed that the top prosecutor’s office recently dispatched an investigator with cryptocurrency expertise to the team.
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