The Southern District Court in Seoul says that Luna is not a security under Korea’s Capital Markets Act at the latest court hearing against former Terraform Labs CEO and co-founder Hyun-Seong Shin (Daniel Shin).
According to local media reports, the Seoul Southern District Court dismissed the prosecution’s appeal against the decision to confiscate the assets of Hyun-Seong Shin.
The prosecution filed the appeal claiming that Luna is a security. However, in the same hearing, the Seoul court noted, “Based on the data submitted by the prosecution, it is difficult to say that Luna falls under the financial investment product regulated by the Capital Markets Act.”
Shin’s attorney stated, “The court rejected all of the prosecution’s 10 or so requests for arrest warrants against former CEO Shin and others involved in this case, consistently ruling that there is room for dispute on whether or not the Capital Markets Act was established. It can be seen that the court judges that it is difficult to view Luna as a financial investment product.”
A few insiders believe that the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Terra founder Do Kwon over allegations of fraud will impact local proceedings as SEC considers Luna as a security.
Last month, South Korean officials searched Terra’s Daniel Shin to arrest him after accusing Shin of making around $105 million through the illicit trade of LUNA tokens before the collapse of Terra.
