A South Korean district court docket has dismissed costs of safety violations towards former Terraform Labs CEO and co-founder Hyun-seong Shin. The court docket deemed LUNA (LUNA) (the native token of the LUNA ecosystem) as non-security beneath Korea’s Capital Markets Act.
The southern district court docket in Seoul dismissed the prosecution’s attraction for confiscating Shin’s properties and his arrest based mostly on securities legislation violations. The prosecution argued that Luna’s fraudulent transactions breached Capital Market Act along with crimes involving property (fraud), making property confiscation a chance, a neighborhood each day reported.
A Google translated model of the court docket’s commentary learn:
“It’s troublesome to see Luna Coin as a monetary funding product regulated by the Capital Markets Act.”
The court docket, whereas rejecting the prosecution’s request for confiscation of the accused’s properties, famous that it’s troublesome to see that the property topic to the declare had been “acquired by against the law or an asset derived from it.”
The newest ruling is extra notable as a result of it states categorically that Luna will not be a safety. Different courts have beforehand used cautious language like “there’s room for dispute when it comes to the legislation” and “it’s questionable whether or not the Capital Market Act may be utilized.”
The lawyer representing the previous CEO mentioned that the court docket rejected the prosecution’s requests for an arrest warrant for his shopper and people related to this case. He added that Luna couldn’t simply be thought-about an funding product based mostly on the court docket ruling.
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The newest court docket ruling makes the Terra-LUNA saga a case of fraud and breach of belief slightly than a violation of the Capital Markets Act. Nonetheless, the prosecution remains to be specializing in the securities side of the native token and has additionally appealed to the Supreme Courtroom towards the decision of the decrease district court docket.
The judgment by the Korean district court docket is in distinction to the stance of the USA Securities and Change Fee, which has charged Terraform Labs and its founder, Do Kwon, with violation of securities legislation. Nonetheless, Kwon’s attorneys have denied the SEC’s securities fraud allegations.
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