The native token of the Terra blockchain Luna Classic (LUNC) was reportedly declared as a non-security crypto in a recent court ruling. This came as a shock to prosecutors who accused Terraform Labs’ co-founder of violating the Capital Markets Law.
Will LUNA Classic Be Considered Separately?
Koinfinans.com As we reported, South Korea District Court denied the prosecution’s allegations regarding crypto LUNA. However, the court also dismissed the state’s appeal to confiscate Hyun-Seong Shin, the former co-CEO of Terraform Labs.
In its ruling, the court stated that it was difficult to view LUNA (now LUNC) as a financial investment product that could be regulated by the Capital Markets Act. It is important to note that the majority of previous South Korean court cases have declared that cryptos are not reviewed as securities. However, other courts have used terms such as “legal dispute”.
US Securities and Exchange Commission (SEC), Terraform and CEO DO Kwon crypto- accused him of defrauding investors in his scheme. He mentioned scams involving algorithmic stablecoins and other crypto-asset securities.
The SEC has claimed that Do Kwon and Terraform are marketing crypto-asset securities to investors with the aim of making a profit, claiming that the value of the tokens they issue will increase. He added that Kwon misled investors when marketing LUNA tokens, which use the blockchain of a famous Korean payment app.
It is important to note that prosecutors at the Seoul Southern District Court also argued that LUNA’s fraudulent transactions violated the Capital Markets Law. The report states that independent legal interests have been violated. However, the judge denied the allegations.