South Korean authorities detain Terraform Labs employee

by in Cryptocurrency News

Terraform Labs

South Korean prosecutors have detained a Terraform Labs (TFL) employee who was on the run in the country and requested a warrant for his arrest.

Law enforcement believes the man named Yoo in the report is one of TFL CEO Do Kwon's key aides. The suspect is believed to have been "market making" in the collapsed Terra ecosystem by pumping trading volumes through asset price manipulation bots.

On September 14, an arrest warrant was issued in Korea for Kwon and five other TFL employees. Yu is one of them.

According to the publication, the court will decide on his detention on October 6.

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Earlier, the head of the TFL said that he was not hiding and was cooperating with law enforcement officers. At the end of September, Bloomberg reported on the issuance of a "red notice" by Interpol for the detention of Kwon. At the time of writing, his card is not on the agency's website.

After receiving the arrest warrant, the prosecutor's office applied to the Ministry of Foreign Affairs for the annulment of the passports of the persons listed in it.

In early October, the department granted the request of law enforcement officers. Kwon was ordered to return his passport within 14 days.

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Recall that the authorities initiated a prosecutorial review of the TFL in May, according to media reports.

In July, police raided the home of TFL co-founder Daniel Sheen and the office of early investor Dunamu & Partners.