The Supreme Court of South Korea has biased with the lower courts to decide that Teraus and Luna do not meet the norms of financial investment products.
The Supreme Court of Korea has ruled that the collapsed Stabelcoin Terroused (USTC) and his sister token Terra (Luna) are not financial investment products, rejecting an prosecution appeal and maintaining earlier decisions, Korean newspapers Etode Reports,
On 23 January, the court rejected the request to confiscate the property from Shin Hyun-Seong, co-founder of Terform Labs, the prosecutors. The court agreed with the lower courts, who had already ruled, not qualifying as a regulated financial product under the Capital Markets Act of Korea, saying that “the related law and record lower court The decision of is valid. “
The prosecutors argued that Luna was some kind of security and tried to seize Shin’s property, claiming that he made illegal profits. Nevertheless, the courts repeatedly ruled that Luna does not meet the legal definition of security or financial investment product.
Capital Market Act does not apply
Law firm Vuri’s lawyer Kim Jung-Chaul said that the ruling not only rejects Luna’s security situation, but also “confirms that the Capital Markets Act does not apply, which means that assets on the basis of that law Seizure is not possible. “
Despite the decision, Shin and other terraform officials still face allegations of fraud. Prosecutors say they misled investors and manipulated the market for benefits from Terra Blockchain.
The major man behind Terra was extradited from Montenegro and presented in a Manhattan court in January on charges of federal fraud. A US Grand Jury inspired Quon to increase Terform’s crypto prices and laundering funds. Terra’s collapse in May 2022 wiped out over $ 40 billion, causing major damage to investors worldwide.
