Is Terra’s Singapore Office A “Paper Company?”

Terra’s main office in Singapore may be just a paper firm, according to reports from a South Korean media outlet.

The report contradicts statements from Terra founder Do Kwon that Terraform Labs (TFL), the lead developer of Terra, has a sizeable presence in Singapore. While the company is incorporated in Singapore, a bulk of its operations were taking place through South Korea.

Documents had shown that TFL had dissolved its South Korean holdings just a few days prior to the Terra crash. This move had spurred speculation over Kwon possibly having prior knowledge of the crash. Seoul has far stricter laws on crypto than Singapore.

Kwon said that Singapore has always been a preferred destination for Terra. But a recent report from South Korean publication SBS News may contradict this.

Terra’s Singapore office not operational

SBS reporters visited the address under which TFL is incorporated in Singapore- UOB Plaza. But the company’s “offices” in the building appeared to be only a law firm that receives mail on behalf of TFL.

Such a practice is typical of a paper firm- a company that is incorporated, but has no tangible operations.

SBS said that other tenants in the building said they had never met a Terra representative in the office.

Another address provided by TFL appeared to be an office under construction. But tenants at the address said construction had been suddenly halted last month.

The reports contradict statements from TFL and Kwon that the Singapore offices are active.

Terraform Labs HQ has always been incorporated in Singapore and is still active and in good standing.

-Kwon said in a tweet last week

Kwon faces tax evasion charges in South Korea

TFL’s dissolving of its South Korean listing may have also been linked to Kwon and the firm facing tax evasion charges.

Local reports said that South Korean authorities charged TFL with about $78 million in unpaid taxes. 

Seoul is also reportedly looking at pursuing more legal action against Kwon and TFL over the Terra crash- which wiped out about $30 billion worth of investor holdings.