of the US Securities and Exchange Commission (SEC) legal filing against Terraform Labs and its CEO do quon “could help South Korean Prosecutors’ case against Kwon,” claimed a report.
Per hankook ilbo, a major South Korean newspaper, said the SEC’s status as a “quasi-judicial institution” would help the South Korean prosecutors’ cause. Previously, legal experts have claimed that prosecutors may struggle to convict Kwon of securities violations. This is due to the fact that South Korean law does not classify crypto assets as securities.
South Korean prosecutors’ case against Kwon may hinge on whether they can convince a domestic court that the Terra ecosystem coins are in fact securities. If they can, they may be able to prove that Kwon sold unregistered coins – knowing they were actually securities.
A prosecution spokesman said:
“The SEC filing is a positive development. Since it is the South Korean courts that determine the nature of virtual assets in Korea, we will focus on proving that [Terra coins are] securities in view of trends in US law.”
before the prosecution called the allegations “meaningful”.
Quan’s whereabouts are currently unknown. prosecutors believe he is living in serbia, His passport has been revoked and an Interpol red notice has been issued for his arrest.
How Could SEC Filing ‘Help South Korean Prosecutors Case’ Vs Do Kwon?
The media outlet claimed that the SEC had “virtually recognized” the “securities” nature of Terra Coins in the context of its allegations against Quan and TerraForm.
If a US court upholds the SEC’s decision, the media outlet said it would “potentially affect the status of [South Korean] Judiciary.
While much will hinge on the decision of US courts, the media outlet quoted legal experts as saying the filing was “encouraging news for South Korean prosecutors” – and could provide a “precedent” for domestic courts.
Such a lack of legal precedent has already hampered the prosecution’s case. Financial Securities Crimes Joint Investigation Team of the Seoul Southern District Prosecutor’s Office last year Failed to convince a court to issue an arrest warrant for Daniel ShinCo-founder of Terraform Labs.
Kwon celebrated the news on Twitter at the time.
However, Kwon has avoided posting since December 10 – around the time that prosecutors began claiming they had discovered his country of residence.
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