As per the news report, on October 6, Judge Hong Jin-Pyo of the Seoul Southern District Court rejected the arrest warrant for the Terra Labs head, Yoo Mo, in less than 48 hours after it was issued. The Judge stated that it was challenging to understand the “necessity and importance” of Yoo’s arrest.
The prosecutor’s office issued a bench warrant for the Terraform Labs executive on October 5 for allegedly manipulating the price of TerraUSD (UST), formerly TerraUSD Classic (USTC) and violating the Capital Markets Act.
The news report also states that the judge took into account Yoo’s South Korean residence, family connections and existing travel restrictions while making his judgment.
Additionally, the Judge questioned whether the LUNA token met the necessary requirements of an “investment contract security” under Korea’s Capital Market Act.
Yoo has apparently not denied his participation in running and overseeing one of Terra’s automated bot programmes, which were at the core of the controversy.
Following the fall of Terra in May, Yoo was potentially the first person to face the charges. However, the prosecutor has another chance to apply for the arrest warrant against Yoo.
Do Kwon, a co-founder of Terra, received an arrest warrant from a South Korean court in September. Moreover, after the issue of arrest warrant, Interpol added his name to its Red Notice list.
At the time of writing the location of Kwon is not known. Reports claimed that the co-founder of Terra may have already departed Singapore, but the South Korean Ministry of Foreign Affairs demanded him to submit his passport by October 20 or face having the passport cancelled.
Businesses in the cryptocurrency industry have been affected legally in numerous ways by the Kwon and Terra lawsuit.
Deputy minister of Indonesia’s Ministry of Trade made a proposal in September wanting two-thirds of the directors and commissioners of crypto enterprises should be nationals. This is supposedly to prevent them “from fleeing the country if any problem emerges.”
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