The South Korean prosecutors in charge of Do Kwon’s Terraform Labs case are bumping into a wall. The “legal vacuum” governing cryptocurrencies effectively prevents judges from deciding the disputes against the authors of the fiasco which caused losses estimated at 40 billion dollars. We even doubt their bias in favor of Kwon’s team in this matter.
Terra, South Korean judges and prosecutors pass the buck
At the end of September, South Korean prosecutors issued a red notice, with the help of Interpol, to flush out the co-founder of the Terra blockchain on the run. Currently untraceable, Do Kwon had been deprived of much of his escape fund due to the efforts of local authorities.
Recently, one of his acolytes was brought before the bar in order to do justice to the unfortunate crypto investors of TerraUSD and LUNA. Unexpectedly, he was released. Judges lacked certainty about a possible breach of capital markets law. However, this crime constitutes the main charge of the file established by the prosecutors.
According to Bloombergthe latter would have swallowed the pill hard, to the point of accusing the judges of being on Terra’s side.
“South Korean prosecutors trying to build a case against fugitive Do Kwon are facing the legal loophole surrounding digital tokens. »
Strongly a legal framework for cryptocurrencies
South Korea seems to be way behind when it comes to securities laws applying to cryptocurrencies. However, in the United States, politicians, regulators and crypto exchange bosses are working together to establish the related legal framework. At the moment, the South Korean authorities have no choice but to note their delay.
Thus, Kang Seong-hoo, director of the Korea Digital Asset Service Provider Association, did not hesitate to make his own comments:
” The trend to regulate cryptocurrencies through securities laws is a global trend and South Korea should follow this path. »
As a former CEO of the South Korean Ministry of Finance, he has the right profile to make such remarks. On the US side, cryptocurrency regulation is somewhat on the right track. Indeed, between the SEC and the CFTC, the sharing of the cake knew no hitch.
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