Hyun-seong Shin, co-founder of Terra, has had security violation charges dismissed by a South Korean district court. This decision was made on the basis that LUNA is not a security under Korea’s Capital Markets Act. Meanwhile, Do Kwon, Terraform Labs’ co-founder and CEO, has filed a motion to have SEC charges against him dismissed. Kwon argues that the SEC’s claims are invalid and that the tokens in question, including Mirror Protocol and TerraUSD Classic, are not securities. Furthermore, Kwon’s legal team claims that the agency did not have the necessary jurisdiction to bring charges against Kwon or Terraform Labs, as their tokens were not specifically aimed at US investors.
However, a recent press conference by the Seoul Southern District prosecutor’s office revealed that Kwon transferred over 10,000 Bitcoin from Terra to a cold wallet at Sygnum bank in Switzerland, before converting it to fiat. The transferred amount aligns with the SEC complaint of approximately $100m, though the prosecutor’s office clarified that the funds were dispersed across various locations.