The arrest warrant for the employee of Terraform Labs was overturned by a court in South Korea

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Last Updated on October 7, 2022 by Bitfinsider

A South Korean court revoked an arrest warrant for a Terraform Labs employee just a few hours after headlines surfaced about the individual’s impending detention.

The arrest of the individual, whose surname is Yu, had been reported by Korean media at an earlier time. It is stated that Yu serves as the head of general business operations for Terraform Labs.

On the other hand, Yonhap News and SBS have now reported that a judge has canceled the arrest warrant, casting doubt on whether or not the detainee should have been held.

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

According to Yonhap, Yu was accused of breaking Korea’s Capital Markets Act through the use of automated trading tools or bots, in addition to committing fraud and breaching trust. These allegations were made in connection with the case.

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

It is stated that Yu is an important assistant to Do Kwon, the founder of Terra. According to a report that was published by The Block earlier on Thursday, 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 subsequent application for a new passport rejected.

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