According to reports, a South Korean judge has ruled that arresting Terraform’s chief of business operations is unnecessary.
A key Terraform employee was freed from detention after a South Korean court judge found there was insufficient justification to keep him detained.
According to Yonhap and SBS, the court canceled an earlier arrest order for employee Yoo Mo on Friday. According to reports, Seoul Southern District Court Judge Hong Jin-pyo believes detention is unnecessary.
Yoo Mo, Terra’s head of general affairs, is accused of using bot programs to influence the firm’s stablecoin UST prior to its depeg from the dollar, which led to the collapse of the Terra ecosystem. Terra’s demise subsequently brought down several centralized corporations, including Celsius, Voyager, and Three Arrows Capital.
He was the first employee of Terraform Labs to be arrested in relation with the incident.
Despite the allegations, Yoo is not currently sought. The fact that he did not deny operating and controlling the disputed bot software was a key aspect in Judge Hong’s ruling.
The judge also considered whether Luna was a “investment contract” under capital markets legislation, the level of Yoo’s cooperation in the affair, and his voluntary return to South Korea after a warrant for his arrest was issued.
Further into the arrest case
The story did not specify where Yoo returned from, but it is assumed that the warrants were obtained for Terraform workers who were and may still be in Singapore.
Nonetheless, the Judge decided that the crime of inflicting enormous consumer losses was significant, and several accusations were explained.
According to a Terraform Labs representative, the company and its stakeholders “are vulnerable to a highly political and unstable legal climate in South Korea.”
“Terraform Labs has been in contact with all federal entities who have requested communication and will continue to do so.” “The facts are on our side, and we look forward to revealing the truth in the coming months,” the spokesman stated in an email to Blockworks.
Prosecutors in South Korea are allegedly evaluating whether to reapply for Yoo’s arrest warrant. They’re also moving quickly to apprehend Terraform CEO Do Kwon, who insists he’s not on the run.
The Ministry of Foreign Affairs ordered Do Kwon to hand up his passport within 14 days on Wednesday. If he does not comply, the document is automatically null and void.
By press time, the Seoul prosecutor’s office had not responded to Blockworks’ request for comment.
Expert in: Google Ads, SEM Expert, PPC Specialist, Paid Social, Facebook, Web Design and DeFi. I work exclusively with successful businesses that are looking to take things to the next level or ambitious startups who give themselves the means to do so. I have experience in many verticals: SaaS, finance, cryptocurrency, retail, real estate, law, IT, medical, pharmaceutical, travel and many more.