South Korean Court: Luna is Not a Security Token
• Seoul Southern District Court ruled LUNA is not a security
• The court also rejected prosecutors’ requests to arrest the Terraform Labs Co-Founder and other executives
• The court denied the prosecution’s claims to confiscate Shin Hyun-Seong’s properties
South Korean Court Rules Luna Is Not a Security
A South Korean District Court has declared that LUNA, the native token of the Terra ecosystem, is not a security. The Seoul Southern District Court categorically stated that LUNA is not considered a financial investment product regulated by the Capital Markets Act.
Court Rejects Requests to Arrest Executives
The court also dismissed prosecutors’ requests to arrest Singapore-based Terraform Labs co-founder Shin Hyun-Seong, and also other executives of the Singapore-based project. In addition, the Southern District Court in Seoul dismissed the prosecution’s claims to confiscate Shin’s properties.
LUNA Token’s Properties Clarified
The latest ruling is notable in that it clarifies Luna’s properties as it is deemed not to be a security. Other courts have yet been clear on whether Luna is a securities token or not.
The Seoul Southern District Court rejected multiple requests from prosecutors to issue an arrest warrant for the Terraform Lab’s co-founder and other executives. Also, they denied the prosecution’s claims to confiscate Shin Hyun-Seong’s properties stating that “it is difficult to see that the property subject to the claim is a property acquired by a crime or an asset derived from it.“
This ruling from South Korea’s court system makes it clear thatLUNA should not be considered asa security token. This decision could set precedence for similar cases in other countries and give clarity on whether certain tokens can be classified as securities or not.