South Korean prosecutors in charge of the Terraform Labs case have arrested a top employee of the beleaguered blockchain startup called ‘Yoo’.

As reported by the Korean media platform JTBC, Yoo is one of the six people for whom prosecutors have issued an arrest warrant. Her specific offense focuses on market manipulations.

According to the report, Yoo’s market manipulation violated Korea’s Capital Markets Law. With the authorities’ history of evading, a court order will be issued to keep Yoo in custody until his trial date.

An arrest warrant is often issued to hold a suspect who has a tendency to run away if he is granted bail. The collapse of Terraform Labs and the associated LUNA and UST tokens has notably upset Do Kwon, Daniel Shin, and other key developers in the Terraform Labs startup.

With more than $40 billion in investor funds wiped out in the blink of an eye, South Korean regulators are seriously looking at who to blame for the crash for law enforcement. Do Kwon has been on the run since the investigation began, although he claims he is not in hiding.

Korean prosecutors have raided exchanges that might have transaction records involving the collapsed LUNA and UST tokens. While the discoveries made from these raids remain an enigma, the determination to bring Do Kwon in for questioning and trial has intensified in recent weeks.

Korean prosecutors have also sought the help of Interpol, and a red notice has been issued to apprehend Do Kwon for arrest. Since seizing his personal cash holdings is not enough to get him out, Korean regulators voided his passport after first sending him a message that he should return the passport within 14 days.

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