Terraform Labs believes South Korean prosecutors are acting unfairly. After the collapse of stablecoin terraUSD (UST) and Luna, according to the companytold the Wall Street Journal.
“We believe this case has become political. And the actions of Korean prosecutors show the unfairness and failure to maintain fundamental rights guaranteed under Korean law,” the company said.
A South Korean court issued arrest warrants for Do Kwon and two other colleagues earlier this month. After the collapse of the stablecoin UST algorithm and the Luna token in May, Terra lost its peg to the dollar and the value of Luna plummeted, resulting in a total loss of about $40 billion.
Terraform Labs also disputes the view that Luna is not classified as a securities. Therefore, South Korea’s laws on capital markets do not apply.
A Terraform Labs spokesperson told the Wall Street Journal: “We believe, as in most industries, that Luna Classic is not and has never been a collateral. Although there are changes in interpretation that the Korean financial authorities” refer to efforts to revive the digital currency.
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