A South Korean district court has ruled that LUNA, the native token of the Terra ecosystem, is not a security.
The court also dismissed prosecutors’ requests to seize properties belonging to Singapore-based Terraform Labs co-founder Shin Hyun-Seong and arrest him along with other Singapore-based project executives.
LUNA is not a security token
The Seoul Southern District Court categorically stated that LUNA is not considered a security, according to a report by local media outlet ilyo on April 24. The court, in its ruling, said: “It is difficult to view LUNA Coin as a financial security. investment product regulated by the Capital Market Law.”
Meanwhile, the latest ruling is notable because other courts have not made it clear whether Luna is a security token or not.
In addition, the court rejected multiple requests by prosecutors to issue an arrest warrant for the Terraform Lab co-founder and other executives, according to Shin’s lawyer. In addition, the Seoul Southern District Court dismissed the prosecution’s claims to confiscate Shin’s properties, stating that “it is difficult to see that the property subject to the lawsuit is property acquired by crime or an asset derived from it.”
As previously reported by CryptoPotato, the co-founder of Terraform Labs has appeared for questioning in the Seoul District Court regarding his involvement in the collapse of LUNA and algorithmic stablecoin UST, resulting in $40 billion worth of losses. For the users.
According to South Korean authorities, Shin allegedly violated the Capital Markets Law and the Electronic Financial Transactions Law, along with other offences. However, the former executive claimed that he left Terraform Labs two years before LUNA/UST collapsed in 2022.
Do Kwon’s Undecided Fate
While LUNA is not considered a security, according to the South Korean District Court, US regulators have sued Terraform Labs and co-founder Do Kwon for securities violation. As stated in a Securities Exchange Commission (SEC) lawsuit, both parties offered and sold unregistered securities through crypto.
Do Kwon, on the other hand, who has allegedly been evading authorities, was arrested in Montenegro. There were also reports that Kwon wired approximately $7 million to a law firm before Terra’s accident.
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This post South Korean court rules Luna not a security: report
was published first on https://cryptopotato.com/south-korean-court-rules-luna-is-not-a-security-report/