The legal process regarding what happened in the Terra ecosystem last year continues in different countries. In the ongoing proceedings in South Korea, which is the center of the ecosystem, it was emphasized that Terra Classic (LUNC) is not a security. According to documents shared by local news sources, the Seoul Southern District Court stated that Terra Classic is not a security during the hearing held on February 16.
According to court records, it is extremely difficult for LUNC to be defined as an investment contract, namely a security, under the Capital Markets Act. This is interpreted as a very critical decision for Terra Classic. As it is known, in the ongoing processes in the USA, the SEC made a security definition for LUNC. The designation of the asset as a security raised some legal problems with the project.
While lawsuits against the Terra ecosystem continue in the USA and South Korea, Do Kwon’s detention in Montenegro continues. Kwon, who was caught in the past weeks, was accused of using a fake passport. The creator of the Terra ecosystem, and the claim of securities fraud in the USA recently, objected to the lawyers of the famous name. Kwon’s lawyers claimed that in connection with the $40 billion collapse of TerraUSD and LUNA, the SEC was unable to prove that Kwon had defrauded US investors.