A South Korean district court has acquitted Hyun-seong Shin, the ex-CEO and co-founder of Terraform Labs, of charges related to security violations. The court has ruled that LUNA, the native token of the LUNA ecosystem, is a non-security under Korea’s Capital Markets Act, rejecting the prosecution’s appeal for confiscating Shin’s properties and his arrest based on securities law violations. It was observed by the court that considering LUNA as a financial investment product regulated by the Capital Markets Act is a challenging perspective. Instead of being a violation of the Capital Markets Act, the Terra-LUNA saga is now considered a case of fraud and breach of trust, according to the ruling.
Despite appealing to the Supreme Court against the lower district court’s verdict, the prosecution continues to concentrate on the securities aspect of the native token.