SEC Filing ‘May Help South Korean’s Prosecutors’ Do Kwon Case’ – Report
The US Securities and Exchange Commission (SEC)’s legal filing against Terraform Labs and its CEO Do Kwon “could help South Korean prosecutors’ case against Kwon,” a report has claimed.
Per the Hankook Ilbo, a major South Korean newspaper, the SEC’s status as a “quasi-judicial body” will help South Korean prosecutors’ cause. Previously, legal experts have claimed that prosecutors might struggle to convict Kwon of securities violations. This is due to the fact that South Korean law does not classify cryptoassets as securities.
South Korean prosecutors’ case against Kwon could hinge on whether they can convince a domestic court that Terra ecosystem coins are in fact securities. If they can, they may be able to prove that Kwon sold unregistered coins – knowing that they were actually securities.
A prosecution spokesperson stated:
“The SEC’s filing is a positive development. Since it is South Korean courts that determine the nature of virtual assets in Korea, we will focus on proving that [Terra coins are] securities while observing trends in US law.”
Earlier, the prosecution called the charges “meaningful.”
Kwon’s whereabouts are currently unknown. Prosecutors believe he is residing in Serbia. His passport has been canceled and an Interpol red notice has been issued, calling for his arrest.
The media outlet claimed that the SEC had “virtually recognized the ‘securities’ nature” of Terra coins in the terms of its charges against Kwon and Terraform.
Should a US court uphold the SEC’s verdict, the media outlet noted this would “likely affect the position of the [South Korean] judiciary.”
While much will hinge on the verdict of the American courts, the media outlet quoted legal experts as stating that the filing was “encouraging news
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