South Korea’s Supreme Court rules TerraUSD and Luna are not securities

Odaily Planet Daily News South Korea's Supreme Court ruled that TerraUSD/Luna is not a financial investment product. Although this is not a substantive ruling on the nature of virtual asset securities, it is expected that the ruling will have an impact on lower courts in the future. The Third Division of the Supreme Court of South Korea rejected the prosecution's appeal against the ruling on the 23rd of last month to reject the request for seizure and preservation of Daniel Shin, former co-CEO of Terraform Labs. The Supreme Court explained that "taking into account the relevant legal principles and records, the original ruling was reasonable and there was no violation of the Constitution, laws, orders or regulations that affected the trial." Previously, the Southern District Court rejected the prosecution's request to confiscate and preserve Shin's assets in November 2022. The prosecution immediately appealed, but the second trial chamber of the same court also rejected the case in February 2023. In particular, the second instance court ruled in its rejection decision that "it is difficult to regard the virtual currency Luna as a 'financial investment product' regulated by the Capital Markets and Financial Investment Business Act based solely on the materials submitted by the prosecution." (Etoday)