Terra Decision from the Court! Is LUNA Securities?

In May 2022, together with him, all cryptocurrency causing a huge collapse in the market Terra (Luna) An important decision was made by the South Korean Court.

According to the report of South Korea’s local news agency, Seoul South Korea District Court of Luna Classic (LUNC) an intangible cryptocurrency decided it was.

This decision of the court Do Kwon, co-founder of Terraform LabsIt was an unexpected decision for prosecutors who accused LUNA of violating the Capital Markets Law and claimed that LUNA was a security.

In the court decision LUNA’Stating that the coin is a non-secure cryptocurrency, he used the following statements:

“It is difficult to view LUNA (now LUNC) as a financial investment product that can be regulated by the Capital Markets Law.

In this context, it cannot be regulated within the framework of LUNA’s Capital Markets Law.”

Like the court’s recent LUNA decision, most other South Korean courts have ruled that cryptos cannot be examined as securities.

South Korean court LUNA despite the decision US Securities and Exchange Commission (SEC) Terraform CEO accused Do Kwon of defrauding investors over LUNA.

The SEC is also the algorithmic stablecoin of the Terra ecosystem. TOP and cryptocurrency LUNA’It claims to be a “crypto-asset investment contract”.

In this context, he argues that Do Kwon also engages in fraud involving crypto-asset securities.

The SEC also stated in its lawsuit against Do Kwon that Do Kwon and Terraform marketed crypto-asset securities to investors to make a profit, and misled investors when marketing LUNA tokens.