Can I move out?

Depends on the nature of your lease, and since it is a verbal lease, this will hinge on who a judge believes. If you moved out to avoid illegal activity, I doubt this will cause a problem for you, but without further details, it is impossible to give a full answer. You should find a local attorney who can ask questions like how long did you live there and what was the agreement when you moved in, etc. so you can get a reliable answer.

(It sounds like moving out was the right decision -- but you should make sure you cover yourself appropriately so it won't hurt you in the future!)