S Korean Court Set to Decide If LUNC Is a Security – Trial of Terraform’s Shin to Begin
The trial of the Terraform Labs Co-founder Daniel Shin is set to begin in South Korea – with prosecutors determined to prove that Terra Classic (LUNC) is a security.
Shin (Korean name Shin Hyun-seong) will face trial on fraud charges on June 10.
And the media outlets Chosun Ilbo and EToday reported that legal experts are expecting a “fierce” battle in court.
South Korean law currently does not classify any cryptoasset as a “security.”
But the prosecution’s case rests on proving that Shin knew LUNC (formerly LUNA) was a “security” when he sold tokens to investors.
Shin has repeatedly said that he stepped away from the Terraform project two years after founding the company in Singapore.
But video interviews with Shin just weeks before the crash appear to hint at an ongoing relationship between the Terra ecosystem and his own payments firm, Chai Corporation.
Even if prosecutors succeed in convincing a district court that LUNC is a security, Shin’s legal team has the right to pursue the matter at a second trial in the high court.
And if this fails, the matter can be taken to the Supreme Court.
Prosecution officials can also appeal verdicts, meaning the legal battle could drag on for months.
But prosecutors are hopeful of victory.
Should they succeed, they will hope to prosecute Shin’s Terraform Co-founder Do Kwon on similar charges.
Kwon is currently awaiting trial for allegedly traveling on forged documents in Montenegro.
He was arrested along with Han Chang Joon, a senior executive at both Chai and Terraform.
The duo was allegedly attempting to board a private plane at Podgorica Airport.
Kwon has stated that LUNC is “not a security” and has complained that the case against him has become “politicized.”
But prosecution officials have been
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