The South Korean Supreme Court ruled that TerraUSD and Luna are not securities

ChainCatcher news, according to Etoday, the South Korean Supreme Court has ruled that the stablecoin TerraUSD and the cryptocurrency Luna are not considered financial investment products or securities. These digital assets collapsed in May 2022, resulting in a loss of approximately $40 billion in value. The latest court ruling may impact similar legal disputes in lower courts.

In November 2022, a court in Seoul rejected the prosecutors' request to confiscate the assets of Daniel Shin, co-founder of Terraform Labs, the company behind these tokens. When the prosecutors appealed, the same court reaffirmed its ruling in February 2023.

In the appellate court, the judges stated that the evidence provided by the prosecution was insufficient to classify Luna as a "financial investment product" under the Financial Investment Services and Capital Markets Act. This ruling was made three years after the legal proceedings began.