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Cancellation of Arrests of Terra Employees. The Story Continues

A South Korean judge, Hong Jin-Pyo, has cancelled the arrest warrants for Terra employees.

The collapse of Luna and Terra stirred up the entire crypto industry and regulators around the world, but there was no lightning punishment of the perpetrators, which has caused indignation of some users. One of the creators of Tera, Do Kwon, has become a figure worthy of a series of detective books. He received an Interpol red notice, his passport was reset, but he still manages to hide his location and move between countries. He also leads a fairly active life on the Internet, running his blog and appearing live. But not all Terra employees are so lucky or abroad.

According to the South Korean news agency Yonhap, on November 29, the Financial Crimes and Securities Crimes investigation team, as well as the second financial investigation unit, sent a request for the arrest of eight people associated with Terra: four developers, three first investors and former CEO Shin Hyun-Seong.

Former CEO Shin Hyun-Seong during the decision-making in court.
Former CEO Shin Hyun-Seong during the decision-making in court. Source: Yonhap

However, after questioning the suspects, Chief Judge Hong Jin-Pyo rejected the arrest request. According to the court, there is no need for arrest, since there is no risk of destruction of evidence.

"Given the attitude to the investigation, the circumstances, the process and the content of the statement, it is difficult to see that there is a risk of destroying evidence or going beyond the exercise of the right to a legitimate defence,"- the judge said. (There may be inaccuracies in the translation, since the original language is Korean)

Representatives of Terra also shared with Сointelegraph their opinion about the incident, stressing that this situation only proves unreasonable demands from the prosecutor's office:

“The Seoul Southern District Court’s ruling on Dec. 3rd to reject South Korean prosecutors’ detention warrant requests for former Terraform Labs employees once again illustrates the unfounded nature of the prosecutors’ claims,” - said a Terra representative.

As for the accusations. The former CEO of Shin received the following charges: receiving illegal profits (140 billion won received by withholding issued Luna tokens, which were sold at an inflated price after the launch), as well as fraud (this is due to the fact that Shin was engaged in issuing a coin with high risks, but did not warn investors about it). The rest of the accused, according to the estimates of the prosecutor's office, illegally received from one to eighty billion won.

The fact that Do Kwon remains at large, and a court in South Korea cancels arrest warrants for employees, does not negate the fact that all of them are still under investigation, but so far they haven’t been held in custody. All this portends to long judicial proceedings . We will continue our observations of the Luna and Terra case and inform you about the news.