In a landmark court ruling on April 23, the Seoul Southern District Court ruled that Luna cryptocurrency is no longer classified as a security.
Court rules Luna is a non-security
According to a court ruling on April 23, Luna, the native currency of the Terra blockchain created by Terraform Labs, is not a security.
The prosecution’s attempts to bring Capital Market Law violation charges against Terraform Labs’ co-founder, early investors, and significant technical development team members that released Luna have suffered a considerable setback.
The prosecution’s appeal against the proposal to dismiss Hyun-Seong Shin, the former co-CEO of Terraform Labs, for confiscation and preservation of confiscation on Feb. 16 was denied by the Seoul Southern District Court.
The court rejected the prosecution’s claim that Luna is an investment security among financial investment products. It ruled that viewing Luna coin as a financial investment product regulated by the Capital Markets Act was not easy.
While dismissing the arrest warrant for Terraform Labs officials, other courts of the Southern District Court used reserved language, such as “there is room for dispute in legal principles” and “it is questionable whether the Capital Market Act can be applied.”
According to Shin’s attorney, the Arrest Court continually ruled that there was room for dispute regarding whether or not the Capital Markets Act was established, rejecting all ten petitions for arrest warrants from the prosecution against former CEO Shin and other parties that were engaged in the case.
Court demands $115m in compensation from Hyun-Seong
Hyun-seong Shin was named in a claim for collection preservation filed by the Seoul Southern District Court in November 2022, with a compensation demand of $115 million.
The court seized most of Shin’s real estate assets, including his home and two buildings in Seoul’s Seongsu-dong and Seongdong-gu neighborhoods. A property in Doksan-dong, Geumcheon-gu, Seoul, and several pyeong of land in Taean, South Chungcheong Province, and Gapyeong and Hwaseong, Gyeonggi Province, were also taken by the court.