Just-In: LUNA Is Not A Security, Declares S.Korean Court; Will US SEC Follow?

LUNC News: Luna Classic (LUNC), the native token of the Terra blockchain has been reportedly declared a non security crypto in the latest court judgment. This comes as a shock for the prosecutors who moved forward with charging Terraform Labs’ co-founder for violating the Capital Market Act.

Also Read: Ex SEC Chief Warns Of More Crypto Lawsuits Ahead; Which Exchange Can Be Next?

LUNA Classic To Be Treated Separately?

As per reports, a South Korean District Court rejected the prosecution’s claims around the crypto LUNA. However, the court also dismissed the state’s appeal of confiscating Hyun-Seong Shin, Terraform Labs’ former co-CEO.

In the judgment, the court mentioned that it is difficult to see LUNA (now LUNC) as a financial investment product that can be regulated by the Capital Markets Act. It is important to note that most of the previous South Korean court trials declared that cryptos were not examined as securities. However, the other courts used terms such as “there is a room for dispute in terms of the law”.

The U.S. Securities and Exchange Commission (SEC) has charged Terraform and its CEO DO Kwon of defrauding investors in the crypto Scheme. It mentioned fraud involving their algorithmic stablecoin and other crypto asset securities.

Also Read: Coinbase CEO Meets SEC Amid Moving Offshore Reports; What’s Happening?

The SEC alleged that Do Kwon and Terraform market crypto assets securities to investors in order to earn a profit, claiming that their launched tokens’ value will surge. It added that Kwon misled investors while marketing the LUNA tokens that a famous Korean payment application utilizes their blockchain.

It is important to note that prosecutors in the Seoul Southern District Court also argued that LUNA’s fraudulent transactions have violated the Capital Market Act. The report states that it was violating independent legal interests. However, the judge rejected the claims.