The South Korean district court ruled that LUNA is not a security under the Korean Securities Market Law.
The court also dismissed the security breach charges against Terraform Labs CEO and co-founder Hyun-Seong Shin. Many courts in South Korea have taken precedent decisions in this direction before.
The Prosecutor’s Office Filed an Appeal
The southern district court in Seoul rejected the prosecution’s appeal for the confiscation of Shin’s property and his arrest based on securities law violations.
According to the news shared by a local newspaper, the prosecutor’s office argued that LUNA’s irregular actions violated the Capital Markets Law in addition to property-related crimes, and therefore it was possible to confiscate the properties. While the court denied the prosecution’s request to confiscate the defendants’ property, it noted that it was difficult to see that the property subject to the request was property or assets obtained from the crime.
The lawyer representing Minus CEO Shin said the court rejected the prosecution’s requests for an arrest warrant for former CEO Shin and people associated with the case.
However, the prosecution still believes LUNA is a security. Considering that the court’s decision was wrong, the prosecutor’s office applied to the Supreme Court to appeal the district court’s decision.
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