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Yoo Mo, an aide to Terraform Labs founder Do Kwon, said: arrested By South Korean authorities for fraud and market manipulation.At the same time, the country’s Ministry of Foreign Affairs Gave Local news reports said it took Kwon 14 days to return his passport.
Yoo Mo was arrested on October 6. He is the general manager of his Terraform Labs and is considered a key aide to Kwon.
Mo is the first person arrested in the ongoing Terraform Labs investigation.
On Oct. 5, the Ministry of Foreign Affairs issued an updated warrant requesting Kwon to return his passport to the passport office or diplomatic missions abroad. The warrant states that if Kwon fails to do so, the Ministry of National Defense will invalidate Kwon’s passport under Article 13 of the Passport Law.
The Seoul Southern District Public Prosecutor’s Office’s financial and securities crime division issued an arrest warrant for Mo on October 5. A day later, on Oct. 6, Mo was arrested while retiring in South Korea.
South Korean officials allege that Mo “fakes” the market by misleading the community into thinking that coin trading is actively taking place. He also used bots to inflate prices and create the appearance of high active trading volume.
Mo’s name was on Do-kwon’s first arrest warrant, which included four people other than Kwon and Mo.
The Terra-Luna affair began shortly after TerraUSD (USTC) lost its peg in early May, leading to the collapse of the Terra (LUNA) ecosystem. The collapse also marked the beginning of the coldest winter in cryptocurrency history.
The collapse became a legal dispute after Kwon was accused of withdrawing $80 million monthly from the Terra project.
South Korea has been involved in the incident since day one, demanding Kwon’s return and cooperation in the investigation. Instead, he defended himself.
After South Korea enlisted Interpol’s cooperation in its search for Mr. Kwon, Interpol issued a red warrant on September 26, obliging law enforcement agencies around the world to locate and arrest Mr. Kwon. Terraform Labs admitted the arrest warrant was “unjustified” without disclosing Kwon’s whereabouts.
On October 5, South Korean authorities found and froze $39.66 million of Kwon held on two exchanges, KuCoin and OKX. Kwon replied that he did not use the exchange because he did not have time to trade, accusing the South Korean authorities of using his own money to eliminate the opposition.
