Court Upholds Previous Ruling – LUNA Not Subject to Capital Market Regulations

The South Korean Supreme Court has reaffirmed lower court decisions that stablecoin TerraUSD (UST) and its sister token LUNA do not qualify as financial investment products. This ruling rejects the prosecutors' appeal, which sought to seize the assets of Terraform Labs co-founder Shin Hyun-seong.

📅 On January 23, the court denied a request to confiscate Shin’s assets, stating that LUNA is not classified as a regulated financial product under South Korea’s Capital Markets Act.

📜 The court stated:
✅ "Existing laws and records confirm that the lower court's ruling is valid."

⚖️ Prosecutors’ Argument Fails: LUNA Is Not a Security

South Korean prosecutors argued that LUNA should be classified as a security and attempted to seize assets linked to Terraform Labs’ leadership.

❌ However, the court repeatedly ruled that LUNA does not meet the legal definition of a security or investment product and therefore is not subject to capital market regulations.

📌 Attorney Kim Jung-chul from Woori Law Firm explained:
🗣 "This ruling not only denies LUNA's status as a security but also confirms that it is not subject to the Capital Markets Act. This means asset seizures under this law are not possible."

🔍 Fraud Charges Still Stand

Despite the court’s decision, Shin Hyun-seong and other Terraform Labs executives still face fraud charges. Prosecutors allege that:

🔹 They manipulated the market for personal gain
🔹 They misled investors
🔹 They exploited the instability of the Terra blockchain to profit

🚨 Do Kwon, the mastermind behind the Terra ecosystem, was extradited from Montenegro and stood trial in New York in January.

🔍 U.S. authorities have charged him with:

  • Artificially inflating Terraform cryptocurrency prices

  • Money laundering

💸 The collapse of Terra in May 2022 wiped out over $40 billion, causing massive losses for investors worldwide.

📌 What Does This Ruling Mean for the Market?

This decision reinforces the argument that cryptocurrencies are not securities, but it also leaves the question of regulation open for future debate.

🔹 Should LUNA be considered an investment product, or is it just another crypto asset?
🔹 Could regulatory authorities in other countries rule differently?
🔹 What impact will this ruling have on similar cases in the future?

👉 What’s your take? Should LUNA be subject to stricter regulations, or should it remain an independent digital token? Share your thoughts! 🚀

#TerraUSD , #LUNA , #CryptoNewss , #CryptoRegulation , #Cryptolaw



Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“