Terraform Labs Business Head Warrant Dismissed Amid Ongoing Legal Woes

The warrant for Yoo Mo, the head of the business team of Terraform Labs, has reportedly been dismissed less than 48 hours after it had been issued. According to an Oct. 6 report from South Korea’s Yonhap News Agency, Judge Hong Jin-Pyo of the Seoul Southern District Court stated that it was difficult to see the “necessity and significance” of arresting Yoo.

The prosecutor’s office in the same jurisdiction had issued a bench warrant for the Terraform Labs executive on Oct. 5, citing charges that included violating the Capital Markets Act and fraud by manipulating the price of TerraUSD (UST), which has now become known as TerraUSD Classic (USTC).

The judge reportedly considered factors such as Yoo’s residence and family ties in South Korea and his existing travel restrictions before making the decision. He also questioned whether the LUNA token qualified as an “investment contract security” under Korea’s Capital Market Act.

Yoo has acknowledged his involvement in operating and managing one of Terra’s automated bot programs, which were at the center of the scandal that followed the collapse of Terra in May. His dismissal marks the first time an individual has faced potential charges post-collapse, although prosecutors have the option to reapply for an arrest warrant.

In September, a South Korean court issued an arrest warrant for Terra co-founder Do Kwon, followed by Interpol adding his name to its Red Notice list. Kwon’s current whereabouts remain unknown; however, reports suggest he may have left Singapore. Additionally, the Ministry of Foreign Affairs in South Korea ordered him to surrender his passport by Oct. 20 or risk having the document voided.

This case against Kwon and Terraform Labs continues to unfold and has significant legal implications for businesses in the crypto space. Recently, the deputy minister of Indonesia’s Ministry of Trade proposed a regulation requiring two-thirds of the directors and commissioners at crypto firms to be citizens. This measure aims to safeguard against directors fleeing the country should any problems arise.