LUNA Token Declared Non-Security: Terra Co-Founder Wins Case!
According to recent news, it is difficult to take Luna token as a financial investment product controlled by the Capital Market Act according to the court.
Security violation charges against former Terraform Labs CEO and co-founder Hyun-seong Shin has put off by the South Korean district court. The court considers Luna (the native token of the LUNA ecosystem) as non-security under Korea’s Capital Markets Act.
Key Takeaways:
- South Korean court declares Luna token as non-security under Capital Markets Act.
- Court rejects securities law violation charges against former Terraform Labs CEO related to Luna.
- Terra-LUNA saga was deemed a case of deception rather than a Capital Markets Act violation.
- Prosecution appeals to supreme court over local token securities aspect.
- US SEC’s stance on securities fraud charges against Terraform Labs founders contradicts the Korean court ruling.
Bitlyfool took to Twitter and made an announcement that the court highlights that it is not easy to see the token of Luna as a financial investment product under the control of the Capital Market Act.
Seoul’s southern district court rejected the prosecution’s appeal about seizing Shin’s property and arrest based on securities law violations. The prosecution indicated that Luna’s fraudulent transaction violated the Capital Markets Act. Crimes like property confiscation occur daily.
The court highlights that it is difficult to see property subjects. Moreover, a claim acquired by a crime or an asset derived from it.
Let’s talk about the latest ruling. However, the present ruling system states that categorically Luna is not a security has become more notable. Previously other courts used safe language that there is flexibility in terms of law, and it is debatable whether the Capital Markets Act applied.
CNC Crypto News & Chart took to Twitter and announced that the district courtroom of South Korea released safety breaches towards the Co-founder and CEO of Terraform Labs named Hyun-Seong Shin.
The lawyer of the former CEO said there was a rejection of the prosecution’s requests for an arrest warrant for his client and other members associated with the case by the court. He also stated that according to the court rule, Luna doesn’t consider a financial investment product.
The present court rules clarified that the Terra-LUNA saga is a case of deception, trickery, and trust transgression rather than a Capital Markets Act violation.
However, the main focus of prosecution is still on the securities aspect of local tokens. Additionally, the prosecution appealed to the supreme court against the decision made by the lower district court.
Jason Fernandes took to Twitter to make an announcement that the court will take Luna as non-security Under the Capital Market Act of Korea.
The Korean lower district courts’ judgments are against the U.S. Securities and Exchange Commission’s stance. United States Exchange Commission has charged Do Kwon the founder of Terraform lab, along with other associated labs. However, the lawyers of Kwon have refused the SEC’s securities fraud allegation.