Terra Co-founders’ $600 Million Luna Transaction Is Hard To Punish
According to the Daily Economic News, the 800 billion won (about $600 million) cross-trading relating to the “Luna and Terra” that precipitated the meltdown was taken out on the South Korean crypto exchanges Bithumb, Coinone, and Gopax. Among them, Bithumb’s cross-trading volume hit 300 billion won, Coinone’s cross-trading volume reached 400 billion won, and Gopax’s cross-trading volume reached 100 billion won. The process of offsetting purchase and sell orders for the same item without registering an exchange transaction is known as cross-trading.
The prosecution stated that the cross-trading concluded at the end of February 2022. At the time, the market and circles made numerous legislative demands for virtual assets, and the majority of virtual asset laws and associated legal modifications were presented, but the emphasis was not scholarly on cross-trading. According to the Capital Markets Act, only coins designated as securities may be penalized as an act of market manipulation. According to the article, punishing the 800 billion won Luna trade would be difficult unless the court recognized Luna as a security. Cross-trading only tokens ostensibly representing securities is punishable as market manipulation under the Capital Markets Act.
Source
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