Korea’s Supreme Court rules failed TerraUSD and LUNA not financial investment products: report

The Supreme Court of South Korea has taken on the side of the lower courts to decide that Terrausd and Luna do not meet the criteria for financial investment products.

KoreaThe Supreme Court ruled that the stablecoin terrausd collapsed (USTC) and his sister token terra (Luna) are not financial investment products, rejecting a prosecution appeal and respecting previous decisions, the Korean newspaper ETODAY reports.

On January 23, the court rejected the prosecutors’ request to seize the assets Terraform laboratories The Shin Hyun-Seong co-founder. The court agreed with lower courts which had already judged that Luna was not considered as a regulated financial product under the law on the capital markets of Korea, declaring that “the law and the related files show that the decision of The lower courtyard is valid ”.

Prosecutors argued that Luna was a kind of security and tried to confiscate Shin’s assets, saying that he has made illegal profits. However, the courts have repeatedly ruled that Luna does not respond to the legal definition of a security or financial investment product.

The law on capital markets does not apply

The lawyer Kim Jung-Chul of the Woori law firm declared that the decision does not only reject Luna’s security status, but “also confirms that the law on capital markets does not apply, which means that the active crisis based on this law is not possible “.

Despite the decision, Shin and other Terraform leaders are still faced with accusations of fraud. Prosecutors say they have misleaded investors and handled the market to take advantage of the terra blockchain.

In KwonThe key figure behind Terra, was extradited from Montenegro and appeared before a Manhattan court in January for accusations of federal fraud. A large American jury charged Kwon for inflating the prices of terraform cryptography and money laundering. The collapse of Terra in May 2022 destroyed more than $ 40 billion, causing major losses for investors worldwide.