South Korea reverses arrest warrant for Terraform Labs exec

Thursday has been a spicy day for the crypto community when reports regarding the arrest warrant for a Terraform Labs employee surfaced. However, soon after the rumors started becoming intense, a South Korean court dismissed the warrant.

A dismissed arrest warrant for Terraform Labs employee

Notably, on October 6, the South Korean media reported that the authorities issued an arrest warrant for none other than Terraform Labs’ head of general business operations, Yu. However, according to the recent development covered by Yonhap News and SBS, a judge has dismissed the arrest warrant, questioning the cruciality of the detainment.

According to the reports, the judge also expressed skepticism regarding whether or not LUNA, the native token of the Terra blockchain ecosystem whose value plummeted dramatically earlier this year, unquestionably fits within the definition of a security under Korean law. 

According to Yonhap, Terraform Labs’ Yu was accused of breaking Korea’s Capital Markets Act with the use of automated trading tools or bots, in addition to committing fraud and breaching trust.

Yonhap reports that the prosecutor’s office is considering whether or not to submit a new request for an arrest warrant against Yu.

It is stated that Yu is an important collaborator to Do Kwon, the founder of Terra. Notably, the South Korean Ministry of Foreign Affairs has given Kwon an order to hand over his local passport within the next two weeks. If the passport is not returned within that period of time, Kwon runs the risk of not only losing the passport but also having his future application for a new passport rejected.

Since the LUNA/ UST disaster happened a few months back, the probe against the entrepreneur is intensifying everyday. As TheCoinRise reported, South Korean authorities have reportedly frozen $39 million in cryptocurrency owned by Do Kwon. Moreover, Interpol has also issued red notice for the arrest of Terraform Labs co-founder.