Mystery South Korean Company that ‘Worked on Terra Network’ Faces Media Scrutiny

A snapshot of the report on Terra by KBS. 

South Korean media outlets say they have unearthed evidence that a blockchain firm based in Seoul has a close relationship with Terraform Labs – and may have been developing for the Terra network under the radar. But the plot may already have thickened – with allegations that the National Tax Service (NTS) found evidence of a “suspicious flow of transactions” between the firm and Terraform Labs when it investigated the firms last year.

In TV reports from the cable network JTBC and KBS, South Korea’s national broadcaster, reporters presented evidence – in the form of documents, video footage, audio, and interviews that appeared to point to a tight relationship between a “blockchain company” named for legal reasons only as Company K and Terraform. The latter liquidated its Busan and Seoul operations in late April/early May and is officially based in Singapore, where it was founded in 2018.

Scrutiny of Terraform has been intense in South Korea since terra (LUNA) (now LUNA classic or LUNC) crashed earlier this month, with the terraUSD (UST) stablecoin losing its peg.

But the media outlets claimed that the evidence suggested that Company K’s developers had been continuing work on the Terra network in secret – and that the relationship between the firms has been tight for some time.

KBS, which has been in contact with an alleged whistleblower, said it had discovered evidence of a “special relationship” – pointing to “internal documents” allegedly provided by “an employee who worked for Terra while employed by Company K.”