Yoo Mo, who doubled as Do Kwon’s aide, was reportedly arrested in the early hours of Oct. 6, following an arrest warrant issued on Oct. 5.
Mo was accused of using bots to inflate the prices of the LUNA token, as well as violating the Capital Market Act.
Judge Jin-pyo argued that Mo may not have violated the Capital Market Act, as LUNA has not been classified as a security under South Korean law.
“There seems to be room for legal dispute over whether the LUNA coin is an investment contract security under the Capital Market Act.”
After interrogating Do Kwon’s aide, Judge Jin-pyo moved to dismiss the arrest warrant against him saying “it is difficult to see the necessity and significance of the arrest.”