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HomeCrypto NewsMarketTFL Defends Do Kwon, Says Terra Founder Did Not Violate Korean Laws As Luna Classic (LUNC) Wasn't A Security

TFL Defends Do Kwon, Says Terra Founder Did Not Violate Korean Laws As Luna Classic (LUNC) Wasn’t A Security


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TFL backs Kwon amid his ongoing legal troubles with Korean prosecutors.

TerraForm Labs (TFL), the company behind the Terra cryptocurrency project, has responded to South Korean prosecutors’ arrest warrant issued for Do Kwon. According to a statement sent to leading news outlet the Wall Street Journal, a spokesperson of TFL said the company’s founder Kwon, did not violate Korean capital-markets laws via Luna offering. 

TFL noted that Luna is not legally a security, adding that there is a tendency that the matter is being politicized to witch hunt Kwon and the Terra project. 

“We believe that this case has become highly politicized and that the actions of the Korean prosecutors demonstrate unfairness and a failure to uphold basic rights guaranteed under Korean law,” a spokesperson for the TFL said. 

TFL’s Further Assertions

The company added that the capital-markets laws would only apply to Kwon and TFL if it proved that Luna is security. TFL is confident that Luna is not a security, as the company believes the authorities are only trying to classify the cryptocurrency as one due to public pressure following the collapse of Terra.

“We believe, as do most in the industry, that Luna Classic is not, and has never been, a security, despite any changes in interpretation that Korean financial officials may have recently adopted,” TFL added.

Kwon’s Location Still Unknown

Recall that Kwon’s legal woes piled up two weeks ago after Korean prosecutors issued an arrest warrant for the TFL founder for allegedly violating the country’s capital-markets laws.

Since the development was made public, Kwon’s whereabouts are still unknown, with many suggesting that the Terra boss has gone into hiding. However, Kwon dismissed the rumors on Twitter, saying he is not on the run and has no plans to do so.

Do Kwon worldwide search began when Interpol issued a Red Notice for Terra’s founder.

While TFL Says They Won’t Disclose Terra (LUNA) Founder Location Because Of ‘Physical Security Risks.’

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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