South Korea’s Supreme Court Rules TerraUSD & LUNA Are Not
Financial Investment Products
$LUNC
$LUNA
In a landmark ruling, South Korea’s Supreme Court has reaffirmed that TerraUSD (USTC) and LUNA do not qualify as financial investment products under the country’s Capital Markets Act. The decision aligns with previous lower court judgments and marks a significant legal precedent in defining digital assets within Korea’s regulatory framework. The ruling also resulted in the dismissal of an appeal from prosecutors seeking to classify LUNA as a security and seize assets from Terraform Labs co-founder Shin Hyun-seong.
On January 23, the court upheld prior decisions that LUNA does not meet the legal criteria of a regulated financial instrument, making asset confiscation under capital market regulations inapplicable. Legal experts suggest that this decision not only confirms the non-security status of LUNA but also sets a broader precedent for similar digital assets in the region. Kim Jung-chul, an attorney from Law Firm Woori, emphasized that the ruling eliminates any grounds for asset seizures based on Korea’s financial investment laws.
Despite this verdict, legal challenges remain for Terraform Labs' executives. Prosecutors continue to pursue fraud allegations, arguing that company leaders misled investors and manipulated the market for personal gain. Meanwhile, Do Kwon, the chief architect of the Terra ecosystem, was extradited from Montenegro and is now facing federal fraud charges in the U.S.. A grand jury indictment accuses him of orchestrating deceptive practices, inflating Terraform’s cryptocurrency value, and engaging in financial misconduct. The Terra ecosystem collapse in May 2022 led to over $40 billion in investor losses, leaving a lasting impact on the global crypto market.
#TerraUSD #LUNA #CryptoRegulation #BlockchainLaw
Financial Investment Products
$LUNC
$LUNA
In a landmark ruling, South Korea’s Supreme Court has reaffirmed that TerraUSD (USTC) and LUNA do not qualify as financial investment products under the country’s Capital Markets Act. The decision aligns with previous lower court judgments and marks a significant legal precedent in defining digital assets within Korea’s regulatory framework. The ruling also resulted in the dismissal of an appeal from prosecutors seeking to classify LUNA as a security and seize assets from Terraform Labs co-founder Shin Hyun-seong.
On January 23, the court upheld prior decisions that LUNA does not meet the legal criteria of a regulated financial instrument, making asset confiscation under capital market regulations inapplicable. Legal experts suggest that this decision not only confirms the non-security status of LUNA but also sets a broader precedent for similar digital assets in the region. Kim Jung-chul, an attorney from Law Firm Woori, emphasized that the ruling eliminates any grounds for asset seizures based on Korea’s financial investment laws.
Despite this verdict, legal challenges remain for Terraform Labs' executives. Prosecutors continue to pursue fraud allegations, arguing that company leaders misled investors and manipulated the market for personal gain. Meanwhile, Do Kwon, the chief architect of the Terra ecosystem, was extradited from Montenegro and is now facing federal fraud charges in the U.S.. A grand jury indictment accuses him of orchestrating deceptive practices, inflating Terraform’s cryptocurrency value, and engaging in financial misconduct. The Terra ecosystem collapse in May 2022 led to over $40 billion in investor losses, leaving a lasting impact on the global crypto market.
#TerraUSD #LUNA #CryptoRegulation #BlockchainLaw
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
Explore the latest crypto news
⚡️ Be a part of the latests discussions in crypto
💬 Interact with your favorite creators
👍 Enjoy content that interests you
Email / Phone number