Home - News - S. Korean Authorities Arrest Terra Employee


October 6, 2022

S. Korean Authorities Arrest Terra Employee

According to a report from a local media site, Yoo Mo, the chief of general business operations of Terraform Labs, was taken into custody by the Seoul Southern District Prosecutors’ Office.

On October 6, the news that Yoo Mo, the leader of the business team of Terraform Labs, had been arrested was reported by several Korean media outlets.

After some time had passed, the district prosecutor, Choi Sung-kook, provided the public with confirmation of the information. Yoo was the subject of a bench warrant issued by the Seoul Southern District Prosecutor’s Office on October 5.

According to reports, he is being charged with violating the Capital Markets Act and fraud for allegedly manipulating the market price of the stablecoin TerraUSD (UST), which is now known as TerraUSD Classic (USTC). The authorities did not provide any information about the arrest, including the time it took place.

According to the article, the executive for Terra was taken into custody on many counts, including violation of the capital markets legislation, fraud, breach of duty, and others. The authorities said that Mo was responsible for running bot code that artificially inflated and manipulated the pricing of Terra’s cryptocurrency.

On Thursday morning, the Seoul Southern District Court was deliberating whether or not to grant the bench warrant. As part of this process, the court was seeking to issue a “direct judgment of warrant” on Mo. According to the source, the decision that will stand for all time will be made sometime today.

Judge Dismisses Arrest Warrant Against Terra Employee

According to Yonhap News, a South Korean court dismissed the arrest order for a Terra executive on Thursday. This complicates the authorities’ attack on the firm that generated the unsuccessful Terra stablecoin ecosystem.

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According to Yonhap News, the judge who was in charge of the warrant turned down the request from the prosecution, stating that it is difficult to discern the need and relevance of arresting the individual in question.

According to local Korean media agencies SBS and Yonhap News, Yoo is no longer considered a wanted criminal despite all of the claims that have been made against him.

It was remarkable that this arrest warrant was issued since it was the first arrest of its sort issued in the aftermath of Terra’s collapse. Do Kwon himself has not been located, despite the fact that the notorious founder said only one month ago that he is not hiding out anywhere.

In related developments,

The Korean authorities have said that they have also attempted to interrogate Kwon over the fall, but that he is now hiding out and has refused to help with the ongoing investigations. As a direct consequence of this, a judge in South Korea has issued a warrant for Kwon’s arrest.

Kwon, who has remained generally quiet on Twitter since Terra’s collapse, popped up on Wednesday on the social media platform to dispute the rumors that the 3,313 Bitcoin frozen by prosecutors in South Korea belonged to him.