Key Focus of the Terra · Luna Trial: Whether They Qualify as Securities
The fallen 'Korean Elon Musk' is expected to return to Korea. This refers to Kwon Do-hyung, CEO of Terraform Labs, the developer of Terra and Luna coins. His extradition to Korea is expected to impact the ongoing trial. On the 7th, the Podgorica High Court in Montenegro overturned the previous decision to extradite Kwon to the U.S. and ruled for his extradition to Korea.
(omitted)
One of the key issues anticipated to be addressed during the trial following Kwon's extradition is whether Terra and Luna can be classified as securities. The determination of whether virtual assets are securities will affect the severity of the punishment, as recognizing them as securities could lead to charges under the Capital Markets Act.
(omitted)
The legal community expects that the determination of Terra and Luna's securities status will have an impact on other virtual assets.
Hyeonsu "Elliot" Jin, an attorney at Decent Law Firm, specializing in virtual assets, stated, "It is highly likely that Kwon will be found guilty of fraud under the Special Act on Aggravated Punishment for Specific Economic Crimes. The key issue is whether there was a violation of the Capital Markets Act,' adding, 'Regardless of the outcome of the punishment, this could serve as a starting point for determining the securities status of virtual assets."
