• South Korean prosecutors requested the court to issue arrest warrant to Daniel Shin and seven other TFL employees
  • The request was denied by the court on December 3
  • TFL : "[This] once again illustrates the unfounded nature of the prosecutors' claims"

Terraform Labs' CEO Do Kwon seemingly mocked the South Korean prosecutors for the court's latest decision on the detention warrant of TFL co-founder Daniel Shin and seven other TFL employees.

On Saturday, the crypto executive shared an article, which reported that the "Seoul court rejects prosecution's move to detain Terraform Labs execs."

Kwon tweeted, "Strike 2" alongside a thumbs-up emoji, seemingly suggesting that the court's decision is another victory against South Korean prosecutors.

The request of the Seoul Southern District Prosecutor's Office to issue arrest warrants against Shin, four engineers and three investors who were allegedly behind the development of the algorithmic stablecoin TerraUSD (UST) and the ecosystem's native token LUNA, was rejected by the South Korean court on Dec. 3, local media reported.

"Considering the attitude toward the investigation, the circumstances, process, and contents of the statement, it is difficult to see that there is a risk of destroying evidence or escaping beyond the scope of exercising the right to legitimate defense," Hong Jin-pyo, the chief judge in charge of warrants at the Seoul Southern District Court told Yonhap.

"The Seoul Southern District Court's ruling on Dec. 3 to reject South Korean prosecutors' detention warrant requests for former Terraform Labs employees once again illustrates the unfounded nature of the prosecutors' claims," a Terraform Labs spokesperson told International Business Times via email. "With these allegations behind us, our focus is on building the future of Terra and developing the best ecosystem in Web3 to launch and scale a blockchain."

"It is hard to understand the court's decision," the prosecutors' office said in a text message sent to Bloomberg. They added that while the court acknowledged the seriousness of the allegations, it still decided to deny the request for arrest warrants. Prosecutors noted that they will review the dismissal and eventually decide if they would file another arrest warrant.

Most Terra Classic community members weren't pleased with the latest ruling. "He needs to be held accountable for stealing money," one Twitter user said while another asked, "why is he not in jail yet?" Another tweet noted, "let's see who wins. Those who lost money believing it was stable. Or those who are negligent and fraud. May justice be served... to those who lost life savings and life."

Lawyer Kwon Ohoon from the law firm Cha & Kwon Law Offices said that given the latest ruling, it is now "questionable" if the court would find Kwon guilty if the prosecutors charged him with Capital Market Law violation. "The prosecutors' arguments linking the capital markets law violations to the Terra/Luna look weak, and the court seems to have decided that they may not be right," the lawyer said.

What Are Terra Stablecoins
Terra released a set of explainer videos in September 2020 in partnership with CoinMarketCap Terra Official YouTube Account