Yoo Mo, the director of business and general affairs at Terraform Lab, is detained by the crime unit of Seoul’s Southern District Prosecutor’s Office. The reports were published by Naver, a South Korean magazine.
The incident results in the initial Terra employee’s being detained as part of the ongoing Terra-LUNA investigation.
The person was the target of a bench warrant issued by South Korean authorities on Wednesday. At Terraform Labs, Yoo is regarded as Do Kwon’s principal assistant.
Yoo was accused by the authorities of breaking the Capital Market Act, betraying his trust, and engaging in fraud. According to the prosecution, Yoo has been engaging in market making by tricking coin transactions with bots.
Choi Sung-kook, the district prosecutor, also acknowledged the arrest. Furthermore, Sung-kook did not reveal the precise location or time of the arrest, though.
By detaining Do Kwon’s closest allies, it appears that the law is closing in on him.
Do Kwon is being sought after by the authorities. However, it is currently unknown where he is.
However, Do Kwon has stated on Twitter that he is not hiding and that he always complies with the law.
The South Korean government has given Do Kwon 14 days to return his passport, according to one of the most recent updates. According to the report, Do Kwon’s passport will be revoked if he doesn’t comply.
Do Kwon has been dealing with a number of issues ever since the Terra-Luna incident. Millions of dollars’ worth of investor savings and the crypto market were wiped out in May by the catastrophic collapse of the Terra ecosystem.