While the Terra/UST $60 billion fiasco seems to be steadily dying down, South Korean prosecutors have revealed plans to launch a recent investigation into the agency and its executives.
According to a current report by the Korean Herald, the Financial and Securities Crime Joint Investigation Team of the Seoul Southern District Prosecutors Office has met with a number of crypto specialists and monetary regulators to assessment Terra tokens.
Terra Tokens Could Be Securities
Per the report, Korean prosecutors intention to find out whether or not to categorize Terra’s digital property beneath securities, together with its native token, LUNA. For the longest time, monetary regulators have been working to find out which crypto property are categorized as securities and non-securities.
While a number of specialists argue that cryptocurrencies are securities since they are often issued like shares, others consider they need to be categorized as a commodity resulting from their decentralized traits.
If Terra tokens are decided to be securities within the investigation, TerraForm Labs, its founder Do Kwon, and different executives can be charged with violating the Capital Market Act.
The agency and its executives are going through fraud and tax evasion costs leveled towards them following the UST debacle earlier in May, ensuing within the lack of over $60 billion in traders’ funds.
The latest investigation comes as a part of efforts by South Korean prosecutors to widen their probe into Terraform Labs and its co-founders concerning the cataclysmic collapse of LUNA and UST.
Korean authorities have scrutinized a number of people and entities associated to the Terra case. Earlier in July, the prosecutors raided the home of Terraform Labs’ co-founder, Daniel Shin, as a part of ongoing investigations.
According to individuals acquainted with the matter, the prosecutors’ new determination would additionally assist policymakers develop the nation’s legal framework for crypto regulation.
U.S. SEC Expands Probe into Terra
As per the report, the United States Securities and Exchange Commission (SEC) can be increasing the scope of its investigations into Terraform Labs.
The agency’s DeFi platform, Mirror Protocol, is at the moment beneath the SEC radar for promoting mirrored property Netflix and Tesla shares in UST.
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