South Korean Court Rules Terra Crypto Asset LUNC Isn’t Security CryptoBlog

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Amid allegations against Do Kwon, the co-founder of Terraform Labs, a recent report from the Korean Sunday News revealed that the Seoul Southern District Court ruled in favor of LUNA, now renamed LUNC, stating that it does not it is not a financial company. investment product. Despite the U.S. Securities and Exchange Commission’s (SEC) recent lawsuit against Kwon, the South Korean court determined that LUNC is not a security, further clarifying its position on the matter.

Seoul Southern District Court rules LUNC not a security

In its recent decision, the Seoul Southern District Court noted that it is difficult to view LUNC as a financial investment product regulated by capital markets law. The court further explained that South Korean officials in the Seoul Prosecutor’s Office could not seize the cryptocurrency assets of Terra co-founder Daniel Shin. The findings could provide relief to Kwon, who is currently detained in Montenegro after being charged by the SEC with multi-billion dollar fraud in mid-February.

The SEC lawsuit claimed that LUNC and other Terra crypto assets were offered and sold as investment contracts, and therefore qualified as security. While Shin is located in South Korea, Kwon’s lawyers have challenged the SEC’s classification of Terra’s assets as securities, and the law firm is also challenging the US regulator’s jurisdiction. Kwon’s case may be bolstered by the recent ruling in South Korea, which recognizes LUNC as a non-security.

Interestingly, a report from mid-April suggests that Kwon paid a top law firm in South Korea $7 million before the Terra ecosystem collapsed. This news may raise further questions about the legitimacy of Kwon’s actions and the company Terraform Labs as a whole. The ongoing legal proceedings will no doubt bring more clarity and closure to the case, but for now, the recent court ruling in South Korea marks a positive step forward for Kwon and Terra. Despite the news, LUNC is down 2.2% today and 9% against the US dollar over the past month.

Tags in this story court ruling, Cryptocurrency, Daniel Shin, do kwon, Fraud, investment, legal battle, LUNC, SEC, Security, South Korea, Terra

What do you think of the South Korean court’s 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 Securities and Exchange Commission the United States ? Share your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 7,000 articles for Bitcoin.com News about disruptive protocols emerging today.

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