South Korea arrests TFL General Affairs Head in connection with Terra Crash

South Korean authorities have arrested a senior Terraform Labs (TFL) executive in connection with the spectacular collapse of algorithmic stablecoin TerraUSD (UST) and token LUNA.

Yoo Mo, head of general affairs for Terraform Labs, was arrested by authorities Thursday and is one of five TFL employees for whom prosecutors issued an arrest warrant on Sept. 14, a local news outlet reported.

Mo was reportedly arrested for violating the Capital Markets Act, fraud and embezzlement. South Korean authorities claim that the executive branch possessed malicious bots capable of manipulating the price of Terra assets, which it did in the days leading up to the infamous collapse.

Using these alleged bots with their ability to manipulate prices was a fraudulent act that tricked investors into believing that Terra crypto assets had high trading volume, making them more attractive to invest in. Mo’s arrest is the latest development in the ongoing Terra saga, which began its implosion in May and wiped out $60 billion in investments.

Authorities are also looking for TFL CEO and co-founder Do Kwon, who they said is “on the run” and no longer in Singapore. The South Korean foreign ministry asked Singapore last month to revoke Kwon’s visa.

South Korean prosecutors also sought Interpol’s help to add the executive branch to their Red Notice List. They said they had frozen $36 million in funds allegedly belonging to the TFL executive.

However, Kwon denied all allegations against him, saying in his latest tweets that it’s just the government “flexing its muscles”. Aside from denying that he was “on the run,” Kwon also said none of his funds had been frozen.

“I don’t understand the motivation for spreading this untruth – flexing your muscles? But for what purpose? Again, I don’t even use Kucoin and OKEx, don’t have time to trade and no funds have been frozen. I don’t know whose money they froze, but good for them, I hope they use it for good,” he said.

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Fry Electronics Team

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