Luna co-founder, Do Kwon, has filed a motion to dismiss the charges leveled against him by the US Securities and Exchange Commission (SEC).
The motion argues that the SEC’s claims are invalid and that the agency lacks jurisdiction to bring charges against Kwon and Terraform Labs. The SEC has claimed that Terra’s tokens, including MIR, LUNA and UST, are securities.
However, a South Korean district court recently dismissed security violation charges against Terra co-founder Hyun-seong Shin, deeming LUNA as non-security under Korea’s Capital Markets Act.
The prosecutor in the Seoul Southern District recently indicted 10 people involved in the collapse of the Terra stablecoin ecosystem. In a press conference following the indictments, the prosecutor identified Signum as the Swiss bank account where Kwon transferred more than 10,000 Bitcoin (BTC) from the Terra platform and the Luna Foundation Guard to a cold wallet, which he then converted to fiat.
The prosecutor also stated that they are monitoring Bitcoin owned by the Luna Foundation Guard and that the transferred amount, which aligns with the SEC complaint, is approximately $100 million.
While the South Korean court’s ruling only applies to LUNA, Kwon’s counsel argues that the SEC lacks jurisdiction to bring charges against him and Terraform Labs because Terra’s tokens and projects were “aimed at the world” and did not specifically target US investors.
The SEC’s actions against Kwon and Terraform Labs led to his arrest in Montenegro, where he currently faces extradition. South Korean authorities issued an arrest warrant for Kwon in September, and US federal prosecutors unveiled criminal charges against him shortly after his arrest.
Do Kwon Seeks SEC Case Dropped
In conclusion, the legal battle between Kwon and the SEC over whether Terra’s tokens are securities is ongoing. The South Korean court’s ruling that LUNA is not a security under Korean law is a victory for Terra, but it does not necessarily mean that the SEC’s claims are invalid.
The prosecutor’s allegations about Kwon’s transfer of $100 million from the Terra platform and the Luna Foundation Guard to a Swiss bank account, and subsequent conversion to fiat, could further complicate Kwon’s legal troubles. It remains to be seen how this legal saga will play out and what impact it will have on the broader cryptocurrency industry.