{"id":46128,"date":"2023-08-08T22:04:53","date_gmt":"2023-08-09T02:04:53","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/xrp-silver-lining-for-korean-do-kwon-prosecutors\/"},"modified":"2023-08-08T22:04:55","modified_gmt":"2023-08-09T02:04:55","slug":"xrp-silver-lining-for-korean-do-kwon-prosecutors","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=46128","title":{"rendered":"XRP \u2018Silver Lining\u2019 for Korean Do Kwon Prosecutors"},"content":{"rendered":"
\n

The XRP trial ruling may reportedly negatively impact South Korean prosecutors\u2019 bid to convict Do Kwon and Terraform Labs of fraud and securities violations, but officials claim otherwise.<\/p>\n

The US Securities and Exchange Commission (SEC) has expressed its \u201cdisappointment\u201d at a court ruling last month that declared that Ripple\u2019s XRP token was \u201cnot in and of itself\u201d a security.<\/p>\n

The SEC has since claimed that Terraform\u2019s coin LUNC (formerly LUNA) is indeed a security.<\/p>\n

But the XRP ruling appears to have opened the door for altcoin operators who wish to challenge such claims.<\/p>\n

The verdict could have an even more significant knock-on effect in South Korea.<\/p>\n

The Seoul prosecution service wants to repatriate Kwon and try him on charges that revolve around the claim that Kwon knew LUNC was a security.<\/p>\n

A major sticking point here is the fact that South Korean law does not classify any cryptoasset as a security.<\/p>\n

And courts in the country have previously ruled that LUNC cannot be considered a security.<\/p>\n

South Korean prosecutors had been hoping to use several American legal rulings as justification for their claim that LUNC is a security.<\/p>\n

<\/oembed><\/figure>\n

SEC-Ripple Verdict: An Obstacle for South Korean Prosecutors \u2013 Or an Opportunity?<\/h2>\n

Maeil Kyungjae reported that the Seoul Southern District Prosecutor\u2019s Office and the South Korean Ministry of Justice co-commissioned an official Korean-language translation of the Ripple judgment.<\/p>\n

Reports claimed that the verdict had \u201craised concerns\u201d that the judgment \u201ccould adversely affect the \u2018Terra-LUNA\u2019 trial.\u201d<\/p>\n

But it appears that the prosecution believes some parts of the ruling actually aid its cause.<\/p>\n

As such, it has \u201cdecided to submit the judgment\u201d to the South Korean judiciary as \u201cfavorable evidence\u201d to support its assertion that LUNC is a security.<\/p>\n

This optimism comes from the fact that the US court \u201crecognized\u201d that when XRP \u201cwas sold to institutional investors,\u201d it was traded as a security.<\/p>\n

Dan Seong-han, the Chief Prosecutor, said:<\/p>\n

\n

\u201cThe ruling recognized that the sale of [XRP] tokens by the Ripple issuer to […] institutional investors constituted the sale of unregistered securities.\u201d<\/p>\n<\/blockquote>\n

The South Korean prosecution has also reportedly been boosted by the ruling of a Federal Court in Manhattan, which recently ruled that crypto could be viewed \u201cas a security\u201d no matter how it was sold.<\/p>\n

Kwon is currently serving a jail sentence in Montenegro for traveling on forged documents.<\/p>\n<\/p><\/div>\n