BREAKING: Court Said Daniel Shin’s Assets Were Not Seized, Luna Is Not A Security
- The court ruled that the prosecution could not seize the assets of Terraform Labs co-founder Daniel Shin and turn them over to the state treasury.
- The prosecution appealed against that.
- At present, the prosecution refuses to accept the judgment of the second instance.
According to the Korea Sunday Daily, on February 16, the South Korean court of second instance denied the prosecution’s appeal request, ruling that the prosecution could not confiscate the assets of Terraform Labs co-founder Shin Hyun-seong (aka Daniel Shin) and give them over to the public treasury.
The court said in its judgment to dismiss the case:
“It is difficult to view Luna Coin as a financial investment product regulated by the Capital Markets Act. It is that Luna did not accept the prosecution’s claim that it is an investment contract securities among financial investment products.”
The prosecution filed an appeal. The court dropped the case because it was impossible to regard Luna tokens as financial investment products governed by the Capital Markets Act, implying that Luna is not a security.
This judgement is notable because it states categorically that Luna is not a security. In dismissing the arrest order for Terraform Labs executives, other courts of the Southern District Court used reserved terms such as “there is space for argument in legal concepts” and “it is dubious if the Capital Market Act may be implemented.”
Shin’s lawyer stated:
“The Arrest Court rejected all of the prosecution’s 10 or so requests for arrest warrants against former CEO Shin and others involved in this case, consistently ruling that there is room for dispute on whether or not the Capital Markets Act was established.”
At the moment, the prosecution refuses to recognize the second instance’s decision and has filed a new request for the seizure and preservation of Daniel Shin’s assets. The prosecution filed a securities-related opinion with the Supreme Court on March 20 and a supplemental opinion on April 14, but the Supreme Court has yet to pronounce its conclusion.
Before to the April 3 announcement, South Korean authorities had searched and confiscated more than $200 million in Terra executives’ and employees’ property.
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