The baffling legal situation of Luna Token the dogs prosecutors are chasing Kwon

The baffling legal situation of Luna Token the dogs prosecutors are chasing Kwon

South Korean prosecutors are trying to build a case against Do Kwon for wiping $60 billion from his crypto project…

South Korean prosecutors have attempted to sue Do Kwon over the removal of $60 billion from his crypto venture, and made a striking admission this month: the latest court decision appears to support his defense.

They made the comment after a judge denied a request to detain someone linked to Kwon’s collapsed Terraform Labs ecosystem. Part of the judge’s reasoning was that it was debatable whether the individual violated the country’s capital markets law as prosecutors claim – a major charge Kwon also faces, and which he has dismissed.

This development highlights controversies over whether the now-declining TerraUSD and Luna Tokens Kwon can be regulated as securities under a law developed for assets such as stocks and bonds. South KoreaAs in the United States and elsewhere, it has yet to implement a legal crypto token to solidify its position.

“Korean law allows for a more limited set of securities than the United States,” said Kwon Ohon, a lawyer at Cha & Kwon Law Firm in Seoul. He said there are six categories under the law and the question is whether Terraform Labs tokens fall into a group known as investment contracts.

Investment contract securities, which are rare in South Korea, are defined as giving a contractual right to profits or liability for losses from a third-party-operated venture. said Judge Kwon, attorney at Cha & Kwon World Health Organization Denying the hold request seemed uncertain whether the tokens were eligible under this law.

TerraUSD was a stablecoin that was supposed to have a fixed value of $1 via a complex mix of algorithms and trader incentives involving Luna, whose price was supposed to rise as the value of the Terraform Labs network increased.

The edifice collapsed in May, contributing to the defeat of $2 trillion in digital assets. lawyers color Investors have filed complaints alleging Do Kwon’s involvement in fraud and illegal fundraising. Prosecutors said last month that Kwon and five others face arrest warrants on charges including violating the Capital Markets Act.

Kwon’s whereabouts then became unclear, but he denied any wrongdoing or escaped. Terraform Labs said there is no reasonable basis to charge Kwon with a breach of capital markets legislation because Luna does not qualify as a guarantee.

Whether securities law captures crypto is a question that officials around the world are asking about digital tokens. In the weFor example, Securities and Exchange Commission Chairman Gary Gensler is trying to gain power over the sector.

Kang Seong-hoo, president of the Korea Digital Asset Service Providers Association and former general manager of the South Korean Ministry of Finance said.

The Seoul Prosecutor’s Office said it was doing its “best effort” to investigate the case, adding that “the fact that there is a legal argument does not mean that the investigation cannot continue.” In a statement, a Terraform Labs spokesperson confirmed its view that neither Kwon nor the company “criminally violated” the Capital Markets Act.

“The most important topic”

Aside from the fierce controversy over the legal status of cryptocurrencies, Kwon is also facing other charges, although the attorney general’s office has not specified what exactly they are. Some of the estimated 280,000 people in South Korea who have bought Luna are also lobbying for fairness.

Terraform Labs exploded as President Yoon Seok Yeol’s administration seized power in May and revived the Financial Investigations Unit of the Attorney General’s Office that had been disbanded by the previous government.

Kim Hyoung Joong, a professor at Korea University Graduate School of Information Security and president of the Korea Fintech Association, said the disruption to Terraform Labs was the “most important topic at the time” and became the first case of a revived team under the spotlight. .

#baffling #legal #situation #Luna #Token #dogs #prosecutors #chasing #Kwon

Leave a Comment

Your email address will not be published. Required fields are marked *