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South Korean Courts Rule Terra Crypto Asset LUNC Is Not a Security – Bitcoin News
Amidst the allegations against Do Kwon, the co-founder of Terraform Labs, a recent report by the Korean Sunday News has revealed that the Seoul Southern District Court has ruled in favor of LUNA, now renamed LUNC, stating that it is not a financial investment product. Despite the recent US Securities and Exchange Commission (SEC) enforcement action against Kwon, the South Korean court has ruled that LUNC is not a security, further clarifying its position on the matter.
Seoul Southern District Court says LUNC is not a collateral
In its recent ruling, the Seoul Southern District Court noted that it finds it challenging to perceive LUNC as a financial investment product regulated by the Capital Markets Law. The court further explained that the South Korean officials from the prosecutor’s office in Seoul cannot seize Terra co-founder Daniel Shin’s cryptocurrency assets. These findings may come as a relief to Kwon, who is currently in custody in Montenegro after being charged by the SEC with multibillion-dollar fraud in mid-February.
The SEC’s lawsuit alleged that LUNC and other Terra crypto-assets were offered and sold as investment contracts, thus qualifying as a security. While Shin is in South Korea, Kwon’s lawyers have contested the SEC’s classification of Terra assets as securities, and the law firm is also challenging the jurisdiction of the US regulator. Kwon’s case may be strengthened by the recent decision in South Korea, which recognizes LUNC as a non-security.
Interestingly, a report from mid-April suggests that Kwon had allegedly paid $7 million to a top law firm in South Korea before Terra’s ecosystem collapsed. This news may raise further questions about the legitimacy of Kwon’s actions and the Terraform Labs company as a whole. The ongoing trials will undoubtedly bring more clarity and closure to the case, but for now, the recent court decision in South Korea marks a positive step forward for Kwon and Terra. Despite the news, LUNC is down 2.2% today and down 9% against the US dollar in the past month.
What are your thoughts on the South Korean court ruling that Terra’s LUNC is not a security, and how do you think it will affect the ongoing legal battle between Do Kwon, Terraform Labs and the US Securities and Exchange Commission? Share your thoughts on this topic in the comments section below.
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