Chinese crypto journalist and blogger Colin Wu has shared a link to a South Korean media outlet that stated that a Seoul court rejected claims that LUNA cryptocurrency is a security.
He also noted that in the majority of previous trials undertaken by various courts in that country, the judges did not find cryptocurrencies to be securities and, therefore, they are not investment products that fall under regulation by the Capital Market Act.
According to Korean media ilyo, South Korea’s Seoul Southern District Court rejected the prosecution’s claim that Luna Coin is a security. In most of the previous trials of South Korean courts, cryptocurrencies were not considered securities and could not be regarded as financial…— Wu Blockchain (@WuBlockchain) April 24, 2023
The investigation of South Korean prosecutors against Terraform Labs, which issued digital currency LUNA, hit a snag after the Seoul Southern District Court dismissed allegations that LUNA was a security.
The former chief executive of Terraform Labs, Shin Hyun-seong, was present in court in early December last year where he was interrogated as a suspect before he was arrested.
Now, the appeal of the prosecutors against the dismissal of Shin Hyun-seong has been rejected by the court. Prosecutors did not get an arrest warrant for Hyun-seong and other former top managers of Terraform Labs.
As covered by U.Today earlier, the founder of Terra, Do Kwon, was arrested in Montenegro. Local authorities shared that they had arrested a person who looked like Kwon and matched his facial description. Later on, the analysis based on finger prints and other factors proved that the individual taken into custody was indeed Kwon.
The fact of his arrest was later confirmed by the authorities of South Korea. Kwon was accused of breaking the laws of South Korea, which led to the collapse of Terraform Labs and its native token LUNA, and caused massive damage to investors and the whole cryptocurrency market last year.