• The US Securities and Exchange Commission (SEC) legal filing against Terraform Labs and CEO Do Kwon could potentially help South Korean prosecutors in their case against Kwon.
• South Korean law does not classify cryptoassets as securities, so prosecutors must prove that Terra coins are securities in a domestic court.
• Should a US court uphold the SEC’s verdict, it would likely affect the position of the South Korean judiciary.
South Korean Prosecutors Could Benefit From SEC Filing Against Do Kwon
The US Securities and Exchange Commission (SEC)’s legal filing against Terraform Labs and its CEO Do Kwon may have beneficial implications for South Korean prosecutors’ case against Kwon, according to the Hankook Ilbo, a major South Korean newspaper.
Terra Coins Not Classified As Securities Under South Korean Law
South Korean law does not classify cryptoassets as securities, which means that prosecutors must convince a domestic court that Terra ecosystem coins are in fact securities if they wish to successfully pursue their case. A prosecution spokesperson said: “We will focus on proving that [Terra coins are] securities while observing trends in US law.”
US Court Ruling Could Affect Position Of South Korean Judiciary
Should a US court rule in favor of the SEC’s charges against Do Kwon, this could positively impact the position of the South Korean judiciary with regards to its own investigation into Kwon. This is because the ruling would provide a “precedent” for domestic courts – something which has been missing from previous attempts by prosecutors to secure an arrest warrant for co-founder Daniel Shin.
Interpol Red Notice Issued For Arrest Of Do Kwan
Kwons whereabouts are currently unknown but his passport has been canceled and an Interpol red notice has been issued calling for his arrest.
Positive Development Per Prosecution Spokesperson
A prosecution spokesperson stated that they view the SEC’s filing as a “positive development.” Hopefully this will be enough to provide sufficient evidence to convict Kwons of any alleged violations of security laws in both countries.