Judge Dismisses Warrant for Terraform Exec Yoo Moo

News / 07.10.2022

Per a Thursday release from a local outlet, the court has dismissed the arrest warrant against TFL executive Yoo Mo. The executive received the warrant on account of his role as head of the Terraform Labs’ business team. Judge Hong Jin-Pyo of the Seoul Southern District Court dismissed the charges but did not extend this treatment to TFL founder Kwon Do-Hyeong. 

Judge Deems Yoo Moo’s Arrest Unimportant, Dismisses Warrant 

A few weeks ago, Seoul’s Southern District Prosecutors Office reopened the TFL investigation following the historic collapse of the Terra ecosystem. In recent weeks, the officials have sent out a slew of warrants to various individuals with ties to the platform. On Wednesday, Oct 5, the executive in charge of TFL’s business team Yoo Moo, received a bench warrant.

The prosecutor’s office reportedly alleged that Yoo had violated the Capital Markets Act and committed Fraud. According to the Yonhap release, the authorities claimed that the executive had manipulated the price of Terra Classic, formerly TerraUSD. However, it appears the charges failed to hold water in court.

Judge Hong Jin-Pyo reportedly claimed that he had trouble seeing the “necessity and significance” of enforcing the arrest. Of course, Hong arrived at this decision after the authorities had questioned Yoo. The report stated that the Judge noted the Terra executive’s voluntary return to Korea after the issuance of the arrest warrant.

Judge Hong reportedly considered the fact that Yoo has a home and family connections in the nation. Furthermore, the Terra exec has already been barred from exiting South Korea.

Judge Hong Questions LUNA’s Classification

Interestingly, the judge also mulled over whether the LUNA token could be considered an “investment contract security” beneath Korea’s Capital Market Act. Indeed, the prosecutors reopened the Terra case to determine whether or not Terra’s digital assets should be classified as securities. 

Judge Hong pointed out that Yoo has not contested his part in running one of Terra’s automated bot programs. Notably, these bots reportedly played a major role in the Terra debacle. As such, Yoo was one of the first involved parties with charges lined up against him after the May crash. 

The Terra executive is in the clear for now, however, prosecutors can still choose to reapply for an arrest warrant. 

Do-Kwon May Lose International Passport 

Meanwhile, CEO and co-founder of Terraform Labs, Do Kwon received a warrant from a South Korean court in September. Since then though, the Do-Kwon has reportedly been evading the grasp of the law. Amidst fruitless efforts to arrest the CEO, the officials turned to Interpol to issue a red notice against him.

Do-Kwon’s whereabouts remain unknown, although he continues to keep his Twitter followers up-to-speed. He claims he is not in hiding but South Korean prosecutors have since refuted that. According to reports, official action against him is escalating.

South Korea’s Ministry of Foreign Affairs issued instructions for Do-Kwon to turn in his passport. If the Terra CEO fails to comply by Oct 20, the officials are set to revoke the document in question. 

 

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.