Media: South Korean court declines to arrest Terraform Labs employee

The court in South Korea denied the prosecutor’s request for an arrest warrant for a Terraform Labs (TFL) employee. Yonhap News and SBS report.

On October 6, the arrest of a Terraform Labs employee who had been on the run within the country became known. According to authorities, he was one of the key aides to CEO Do Kwon and was involved in “creating a market” in the collapsed Terra ecosystem.

According to reports, he was charged with violations of the Capital Markets Act, fraud and breach of trust.

The prosecutor sought the arrest of the man. The judge did not see a necessity for it and doubted that the LUNA token falls under the definition of securities under local law. The watchdog plans to refile the request, Yonhap News reports.

On September 14 in Korea issued an arrest warrant for Kwon and five other TFL employees.

The head of the company said that he is not hiding and is cooperating with law enforcement. At the end of September, Bloomberg reported that Interpol had issued a ‘red notice’ for the arrest of Kwon.

Following the arrest warrant, the prosecutor’s office turned to the Ministry of Foreign Affairs to revoke the passports of the individuals named in it.

At the start of October, the agency approved the law-enforcement request. Kwon was ordered to return his passport within 14 days.

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