Recently, the prosecutor’s office issued arrest warrants for six people, including Terraform Labs CEO Kwon Do-hyung, on charges of violating the Financial Investment Services and Capital Markets Act. However, experts’ opinions are divided on this issue. For virtual assets have never been deemed to have properties like that of securities to this date, the coming court ruling is expected to establish a basis for distinguishing security tokens. Partner attorney Ohoon Kwon said, “If the interest was paid just for holding Luna without staking, it may be regarded as an investment contract security. However, as it did not have such a system, it is difficult to conclude it as an investment contract security.” [Digital Today 09.16.22]

URL: Are Terra and Luna Securities? — Industry Insiders Argue Differently