Court rejects the arrest warrant for Do Kwon’s assistant

The South Korean Prosecutor’s Office lost its hopes as the Seoul Court hearing on the 6th of October ended with the dismissal of an arrest warrant for Do Kwon’s assistant. The Financial and Securities Crimes Unit charged Yoo with accusations of violating the Capital Market Act, breach of trust, and fraud.

According to the South Korean Prosecutor’s Office, one of the key employees of Terraform Labs was active in the field of artificial market formation.The prosecutors allege that Yoo has been doing market making by deceiving coin transactions using specialized bot programs.

The Seoul Court took into consideration Yoo's confirmation of using bots and his voluntary return to Korea after the arrest warrant was issued. Also, the court’s decision was influenced by the fact that the accused had a permanent residence, family and an official ban on leaving the country.

The other charges brought against Do Kwon’s assistant resulted in disagreements between the prosecutor and the judge. They concern not only the degree of responsibility of Yoo as an accomplice of CEO Terraform Labs, but also the characteristics of the LUNA token:

“There seems to be room for legal dispute over whether the LUNA coin is an investment contract security under the Capital market Act.”

Summing up the meeting, Judge Hong focused on the severity of the crime, which caused serious damage to numerous investors. However, he added that “some of the allegations have been clarified.”

The Prosecutor’s Office plans to apply again for the arrest warrant against Mr Yoo after a detailed examination of the reasons for the dismissal. It’s due to concerns about the investigation of Do Kwon’s case, who may get support from the judicial authorities after his assistant's acquittal.