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.

ChainCatcher news, the U.S. Securities and Exchange Commission (SEC) stated that Jump Trading subsidiary Tai Mo Shan Ltd. will pay $123 million to settle allegations of misleading investors by stabilizing the coin during the collapse of TerraUSD.The company, related to Jump's cryptocurrency division, made significant purchases during the collapse of TerraUSD to support the failed stablecoin's peg to $1, thereby deceiving the market. The SEC accused Tai Mo Shan of negligence, noting that it executed trades worth $20 million that created a false impression of TerraUSD's stability.The regulator also emphasized the company's role in underwriting TerraUSD's sister token Luna, claiming it was involved in the issuance of unregistered securities.

ChainCatcher news, Prime Trust's parent company Prime Core Technologies reported that the company lost $6 million of client funds and $2 million of financial funds due to its investment in TerraUSD. This investment, along with increased expenditures in October and November 2022, is one of the reasons for its bankruptcy filing.Previous report, Prime Trust has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Delaware bankruptcy court and appointed John Guedry as the company's custodian, who will continue to manage its business as a debtor in possession under the supervision and guidance of a special committee.

ChainCatcher news, according to informed sources, the U.S. Attorney's Office for the Southern District of New York is investigating employees of Jump, Jane Street, and Alameda Research for their chats on Telegram last May regarding a potential bailout of the TerraUSD (UST) stablecoin project, and whether it involved possible market manipulation. As part of the chat review, no one has been accused of wrongdoing, and the investigation does not necessarily mean that charges will be filed.Previous report, according to sources cited by The Wall Street Journal, the U.S. Department of Justice is investigating the reasons behind the collapse of the TerraUSD stablecoin last year. (Bloomberg)

ChainCatcher news, citing sources familiar with the matter from The Wall Street Journal, reports that the U.S. Department of Justice is investigating the reasons behind last year's collapse of the TerraUSD stablecoin. The report states that the FBI and the Southern District of New York (SDNY) have questioned former team members of the company behind the stablecoin. Terraform Labs did not immediately respond to requests for comment, and a spokesperson for the New York Attorney General's office declined to comment.Previous report, last month the U.S. Securities and Exchange Commission charged Do Kwon and Terraform Labs with fraud. The Singapore police have begun investigating Do Kwon's Terraform Labs. (The Wall Street Journal)