Does securities law captures crypto?

South Korean prosecutors are trying to build a case against Do Kwon over the $60 billion wipeout.

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They issued their comments after a judge dismissed Kwon's motion to detain persons associated with the crumbling Terraform Labs ecosystem.

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The development highlights the controversy surrounding whether TerraUSD and Luna tokens created by Kwon can be regulated as securities under laws designed for assets.

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Like the United States and other countries, South Korea has yet to implement crypto legislation to solidify its position.

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Prosecutors said last month that Kwon and five others were facing arrest warrants involving capital market law violations.

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Kwon's whereabouts have since become unknown, but he has denied any wrongdoing or fleeing.

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Terraform Labs said it had no reasonable basis to accuse Kwon of violating capital market laws because Luna does not qualify as a security.

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