{"id":164524,"date":"2022-09-29T07:38:30","date_gmt":"2022-09-29T07:38:30","guid":{"rendered":"https:\/\/precoinnews.com\/?p=164524"},"modified":"2022-09-29T07:38:30","modified_gmt":"2022-09-29T07:38:30","slug":"wsj-terraform-labs-claims-case-against-do-kwon-is-highly-politicized","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/wsj-terraform-labs-claims-case-against-do-kwon-is-highly-politicized\/","title":{"rendered":"WSJ: Terraform Labs claims case against Do Kwon is \u2018highly politicized\u2019"},"content":{"rendered":"
Terraform Labs, the company behind the development of the Terra (LUNA) blockchain said South Korea\u2019s case against its co-founder Do Kwon has become political, alleging prosecutors expanded the definition of a security in response to public pressure.<\/p>\n
\u201cWe believe that this case has become highly politicized, and that the actions of the Korean prosecutors demonstrate unfairness and a failure to uphold basic rights guaranteed under Korean law,\u201d a Terraform Labs spokesman said to The Wall Street Journal on Sept. 28.<\/p>\n
South Korean prosecutors issued an arrest warrant for Kwon on Sept. 14 for violations of the countries capital markets laws, but Terraform Labs laid out a defense arguing Terra (now known as Terra Luna Classic (LUNC)) isn\u2019t legally a security, meaning it isn\u2019t covered by capital markets laws.<\/p>\n
The spokesman alleged prosecutors of expanding the definition of a security due to intense public pressure from the collapse of Terra and its connected algorithmic stablecoin TerraUSD (UST), now known as TerraClassicUSD (USTC).<\/p>\n
\u201cWe believe, as do most in industry, that Luna Classic is not, and has never been, a security, despite any changes in interpretation that Korean financial officials may have recently adopted.\u201d <\/p><\/blockquote>\n
The argument by Terraform Labs\u2019 stems from the unclear regulatory status of cryptocurrencies and the companies who create and issue them. <\/p>\n
Currently, capital market and electronic securities’ systems in the country don\u2019t include a legal definition of non-standardized securities issued through a blockchain.<\/p>\n
Related:<\/em><\/strong> <\/em><\/strong>South Korea’s financial watchdog wants to ‘quickly’ review crypto legislation<\/em><\/strong><\/p>\n
The country is moving to regulate the space with its financial regulator, the Financial Services Commission (FSC) preparing guidelines for security tokens by the end of 2022. <\/p>\n
A leaked government report in May further revealed South Korea\u2019s plans to roll out a crypto framework by 2024.<\/em><\/p>\n
Kwon\u2019s whereabouts remain unknown and Terraform Labs did not comment on his location citing physical security risks, but Kwon says he\u2019s not making an effort to hide even after a notice was sent to global authorities by Interpol.<\/p>\n