South Korean Court Rules Terra Crypto Asset LUNC Is Not a Security – The Seoul Southern District Court has stated that it is difficult to classify LUNC as a financial investment product regulated by the Capital Markets Act in its recent ruling. Additionally, the court has clarified that the cryptocurrency assets of Terra co-founder Daniel Shin cannot be seized by South Korean officials from the Seoul prosecutor’s office.
These rulings may bring some relief to Kwon, who is currently in custody in Montenegro after being charged with a multibillion-dollar fraud by the SEC in mid-February. According to the lawsuit filed by the SEC, LUNC and other Terra crypto assets were marketed and sold as investment contracts, making them eligible for categorization as a security. Shin is based in South Korea, and Kwon’s legal team has disputed the SEC’s classification of Terra assets as securities, and they are also questioning the jurisdiction of the US regulatory body.
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The recent ruling in South Korea, which acknowledges LUNC as a non-security, could strengthen Kwon’s case. It has been reported in mid-April that Kwon purportedly paid $7 million to a leading law firm in South Korea before Terra’s ecosystem collapsed. This revelation could potentially raise more questions about Kwon’s activities and the overall legitimacy of Terraform Labs as a company. However, ongoing legal proceedings are expected to provide more clarity and resolution to the matter.
Nonetheless, the recent ruling by the South Korean court is a positive development for Kwon and Terra. Despite this favorable news, LUNC has experienced a 2.2% decline in value today and a 9% drop against the US dollar over the past month. The market’s reaction could be due to ongoing uncertainty regarding the legal proceedings and the overall state of the cryptocurrency market. It is worth noting that the crypto market is highly volatile, and the value of cryptocurrencies can fluctuate significantly in a short period.
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