The Seoul Southern District Court has dismissed the prosecutors’ warrants for arrest of several leading figures in Terraform Labs, according to South Korean news outlet Yonhap.
Prosecutors filed the warrants just two days ago. The highest-profile potential arrestee was Daniel Shin, the CEO of Chai Corp. and a co-founder of Terraform Labs. The dismissal does not eliminate criminal prosecution, which remains active, but means that they won’t remain in custody for the proceedings.
Terraform Labs said in a statement that the dismissal of the arrest warrants "once again illustrates that the prosecutors are trying to stretch Korean laws beyond their breaking point."
The case is ongoing on many fronts. The court is also seeking Terraform’s other founder, CEO Do Kwon, who is not revealing his location.
Terraform Labs’ crypto tokens Terra and Luna collapsed in May, wiping out $50 billion in value and setting off a summer of defaults and bankruptcies across the crypto industry.
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