Korean police reportedly arrest first person involved in Terra collapse


After months of investigation without any single arrest and the main offender on the run teasing the enforcers on Twitter, South Korean police have reportedly captured the first person involved in the Terra blockchain ecosystem collapse. 

The news about the arrest of Yoo Mo, the head of the business team of Terraform Labs, appeared in Korean media on Oct. 6, later the district prosecutor Choi Sung-kook confirmed the information to Forkast.

How To Get Free Crypto  

The Seoul Southern District Prosecutors’ Office issued a bench warrant on Yoo on Oct. 5, reportedly charging him with the violation of the Capital Markets Act and fraud by manipulating the market price of the stablecoin TerraUSD (UST), now known as TerraUSD Classic (USTC). Authorities did not reveal details of the arrest such as the time.

The arrest warrant on Yoo was issued back in September — the executive is believed to be a part of the inner circle of Terra’s cofounder Do Kwon. On Sept. 26 Interpol issued a Red Notice, “request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action,” on Do Kwon.

Related: Terra could leave a similar regulatory legacy to that of Facebook’s Libra

Meanwhile, a Terraform Labs spokesman claimed South Korea’s case against the company’s top management has become political and alleged prosecutors of expanding the definition of security in response to public pressure. The $40 billion Terra ecosystem collapse in May 2022 led to a crypto market rout that wiped out nearly a trillion dollars from the crypto market.

Currently, capital market and electronic securities regulations in the country don’t include a legal definition of non-standardized securities issued through a blockchain. The country is moving to regulate the space with its financial regulator, the Financial Services Commission, preparing guidelines for security tokens by the end of 2022.

Coinbase Banner  

Go to Source
Author: David Attlee

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.