In Terra (LUNA) Scandal, Company Officials Made a Statement About the Case!

Terraform LabsWednesday to the Wall Street Journal in a statement, South Korean prosecutors said that the stablecoin TerraUSD (UST) and digital asset terra (luna) believes he has acted unjustly in the wake of his collapse.

Terraform Labs Officials Say South Korea’s Terra (luna) Case Is Getting Politicized

The company, which oversees the development of the Terra Blockchain protocol, said in a statement to the financial news outlet:

“We believe this case is highly politicized and the actions of Korean prosecutors fail to protect fundamental rights guaranteed under Korean law.”

Earlier this month, after a South Korean court slammed the crash of algorithmic stablecoin UST and related token Luna in May, the company CEO Do Kwon and has reportedly issued arrest warrants for two of his employees.

Terra lost its dollar peg, and Luna’s value fell sharply, resulting in a total loss of about $40 billion.

Terraform Labs founder Do Kwon recently said on Twitter that he “made no effort to hide” after reports that Interpol had issued a red notice for his arrest.

Singapore police issued a statement saying Kwon was not in their jurisdiction, Reuters reported on September 17.

The Wall Street Journal wrote that Terraform Labs advocates the view that Luna is not legally classified as a security and therefore South Korea’s capital markets law will not apply.

A Terraform Labs spokesperson told the Wall Street Journal, cryptocurrency Referring to the efforts to revive the unit, “Like many in the industry, we, of Luna Classic “We believe there is no security and never will be.”

*Not investment advice.