​​SEC Filing ‘May Help South Korean’s Prosecutors’ Do Kwon Cas | Crypto Mountains

​​SEC Filing ‘May Help South Korean’s Prosecutors’ Do Kwon Case’

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.”