The arrest warrant for Daniel Shin, who founded stablecoin issuer Terraform Labs with Do Kwon, was dismissed by a South Korean court on Saturday local time, according to Yonhap News.
"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, chief judge in charge of warrants at the Seoul Southern District Court, said, according to Yonhap.
A Terraform Labs spokesperson told CoinDesk that the decision "once again illustrates the unfounded nature of the prosecutors' claims."
An arrest warrant has also been issued for Do Kwon, but his location is unknown. Key personnel and former employees from Terraform Labs have been banned from leaving the country.
Arrest warrants for three early investors and four developers of Terra Luna, which were also requested together, were all dismissed for the same reason on Saturday, according to Yonhap.
UPDATE (Dec. 2, 17:57 UTC): Updated with details and background throughout.
UPDATE (Dec. 5, 09:39 UTC): Adds comment from Terraform Labs in third para.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.