Authorities in South Korea are having trouble building a strong case against Do Kwon, the creator of the defunct Terra (LUNA) ecosystem.
According to Bloomberg on October 26, there is disagreement over whether tokens connected to the Terra ecosystem should be regulated similarly to other traditional asset classes like equities and bonds due to the lack of defined crypto regulatory laws.
The court recently denied the prosecution’s request to detain a person connected to the Terraform Labs ecosystem, which was a blow to the prosecution’s case. The judge ruled that it is still up for debate whether the defendant actually broke the South Korean Capital Markets Act, despite what the prosecutors claimed.
Notably, Kwon is charged with breaking the nation’s Capital Markets Act and has an active arrest warrant out for him. Since then, he has denied all wrongdoing.
Obstacles to prosecution – South Korean
Intriguingly, the prosecution has appeared to point to the cases’ challenges by asserting that it is making “its best endeavors” to establish the facts. The authorities insist that the lack of precise regulations does not imply that the investigations are over.
Nevertheless, it’s important to keep in mind that the prosecution has not yet made public any of the extra counts that Kwon is facing. A total of 280,000 people who suffered losses as a result of the catastrophe demanded compensation. In a lawsuit filed by the victims’ attorney, Kwon was accused of engaging in illegal fundraising and fraud.
Notably, concerns over the Terra case prosecution in South Korea are a global phenomenon, with several nations questioning whether cryptocurrencies should be considered the same as conventional stocks or commodities.
“The move to regulate cryptocurrencies through securities-related laws is a worldwide trend and South Korea is set to follow that path,” said Kang Seong-hoo, the head of the Korea Digital Asset Service Provider Association.
Kwon is eloping
Kwon is still at large, and the prosecution is having trouble choosing how best to proceed with the case. Kwon claims he is not a fugitive, but Interpol has already taken action and issued a red notice against him.
It’s interesting to note that after Terra’s demise, Terra Classic (LUNC), the platform’s original chain, fell sharply before regaining strength for a while. With more selling pressure, the token has since lost some of its impetus.
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