Terraform Labs Accuses South Korean Officials of Prosecutorial Overreach [Report]:
Singapore-based company, Terraform Labs, has revealed that South Korean prosecutors exceeded authority reach regarding the arrest warrant against the firm’s co-founder, Do Kwon.
The company added that the Luna token is not a security, arguing that public pressure could have caused the prosecutors to amplify the definition of securities.
A spokesperson for Terraform Labs disclosed to the Wall Street Journal in a statement saying that South Korean prosecutors were “overreaching their authority.” According to the spokesperson:
“We 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.”
As previously reported by cryptoforpidgin, earlier in September, a South Korean court issued an arrest warrant against Kwon and five others, claiming that all violated capital market rules.
Shortly after, the Terraform Labs co-founder reacted, saying he was not on the run, but he had no reason to make his location known to everyone.
Even in the latest report, the Terraform Labs spokesperson refused to disclose Kwon’s location, stating
“ogoing physical security risks to him and his family” and attempts to break into the co-founder’s South Korea and Singapore residences as reasons for concealing his whereabouts.
Meanwhile, the efforts to locate the Terraform Labs co-founder induced allegations that Kwon moved 3,313 BTC from Luna Foundation Guard (LFG) wallets to KuCoin and OKX – He refuted the claims.
Also, Terraform Labs has also argued that Luna is not legally classified as security, meaning that the token was not under South Korea’s capital markets law.
Which also means that neither Do Kwon nor the company carried out any illegal operations.
The spokesperson said:
“We believe, as do most in the 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.”