Breaking: South Korean Prosecutors Starts New Investigation Into Terra (LUNA)
South Korean prosecutors’ team has started a new investigation and review on Terra tokens to categorize them under securities. TerraForm Labs, its founder Do Kwon, and other affiliates will also be charged with violating the Capital Market Act if Terra tokens LUNA, LUNC, and UST (now USTC) are found to be securities.
Prosecutors Investigate Whether Terra Comes Under Securities
The Seoul Southern District Prosecutors Office’s Financial and Securities Crime Joint Investigation Team met with experts from crypto exchanges and financial regulators including Financial Supervisory Service to determine if Terra tokens are securities, reported the Korea Herald on September 13.
The move will also accuse TerraForm Labs, Do Kwon, and other affiliates of violating the Capital Markets Act. Currently, Terra and its executives are under scrutiny for fraud and tax evasion allegations.
The prosecutors investigating the collapse of LUNA (now LUNC) and UST (now USTC), may charge the defendants with Capital Markets Act violations irrespective of the financial authorities’ judgment. Moreover, the prosecutors’ decision would also help lawmakers in the upcoming crypto regulation.
Financial regulators are working to categorize cryptocurrencies into securities and non-securities. However, some experts believe crypto are securities as they can be issued like stocks, while others consider crypto as a commodity due to their decentralized properties.
The U.S. Securities and Exchange Commission (SEC) is also investigating LUNA developer Terraform Labs. Terra’s decentralized finance platform Mirror Protocol is under investigation for selling mirrored assets of US stocks in UST.
LUNA and LUNC Skyrockets Amid Community Support
While South Korean authorities investigate fraud and other allegations against Terra, LUNC and LUNA tokens jumped over 200% last week. Both tokens saw over $3.5 billion daily trading volume.
Terra Classic (LUNC) price made a high of $0.00058. Currently, it is trading at $0.00037, down nearly 2% in the last 24 hours. The rally comes amid support for the 1.2% tax burn and staking of LUNC tokens.
Meanwhile, Terra (LUNA) price jumped to a high of $7.06. At the time of writing, the price has plummeted to $4.52.
- Asset Manager Pushes 45% HYPE Supply Cut, Analyst Calls $100 Target by Year-End
- Bitcoin, Ether ETF Data Signals Huge Selloff Sentiment Ahead of Fed Jerome Powell Speech Today
- Trump’s WLFI Confirms Debit Card & Retail App Launch Amid Partnership With Bithumb
- Vitalik Buterin Addresses Key Myths Over Coinbase L2 Base Custody Concerns
- 21Shares Spot DOGE ETF Secures DTCC Listing as Expert Predicts Dogecoin Rally
- Solana Price Prediction: $836M Whale Transfer Spark Fear of $200 Retest Before 62% Rebound
- Bitcoin Price Prediction: $150K in Q4 as Gold’s ATH Momentum Sets the Tone
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
