South Korean Court Exonerates Terra Classic of Violating Capital Markets Act; LUNC Is Not a Security!
Terra Luna Classic (LUNC), a blockchain that rebranded from Terra chain following last year’s collapse, has attracted the attention of global regulators. With Do Kwon already under custody, the attention has significantly shifted to regulating the industry to curb such incidents in the future. Moreover, Kwon does not have assets that can be liquidated to repay the affected customers.
In a bid to keep blockchain and crypto companies in check, a debate is expected to be on whether digital assets should be traded as a security or a commodity.
LUNC is Not a Security
Reportedly, a South Korean district court has rejected the prosecution’s claims that Terra Classic’s native coin LUNC is security. The judge noted that there is no substantial evidence that LUNC has violated the Capital Markets Act.
The ruling is a bold move for the South Korean government that is currently prosecuting Do Kwon for fraud through crypto and blockchain technology.
Previously, other South Korean courts have ruled that crypto assets are not securities although the room for discussion on the law interpretation stands.
Price Action
The announcement had a little positive impact on the LUNC price action. According to the latest crypto market update, LUNC traded around $0.00011071 on Monday, down approximately 2.8 percent in the past 24 hours. The LUNC price is, however, far from attaining LUNA’s former ATH of around $119. While most digital assets have recorded positive gains YTD, LUNC price has been on a decline since the calendar flipped.
Bigger Picture
Following the ruling that LUNC is not a security, the XRP community hopes the Manhattan judge could follow a similar path in the SEC vs Ripple case. Furthermore, there are minimal differences between LUNC and XRP in execution.
BitDAO Community Accuses Alameda Research Of Violating No-Sale Contract
According to Lookonchain, an on-chain consulting company, Alameda Research only controls 56 Ethereum addresses, which marks a decline from its possession of $500 million on October 1st. At the time of this writing, the amount of Ethereum held in Alameda’s wallet had decreased by fifty percent.
This week’s cryptocurrency market crash may be directly attributed to the FTX-Alameda controversy. There was an increase in the amount of selling pressure being applied to Bitcoin (BTC), Ripple (XRP), and Binance Coin (BNB). The price of Ethereum has dropped by about 17%, which sent it far lower than the 76.4% Fib retracement level of the primary advance that occurred from the swing low of $1,200 to the high of $1,600.
On Tuesday, the decentralized autonomous organization (DAO) BitDAO became involved in the FTX-Alameda dispute as the value of the DAO’s native currency, BIT, fell by 20%. BitDAO is one of the biggest DAOs. According to the claims made by the CEO of Bybit, Ben Zhuo, Alameda has apparently violated a three-year mutual no-sale public agreement.
“The BitDAO community is questioning the sudden dump of $bit token caused by Alameda dumping and breaching the 3 yr mutual no sale public commitment. Nothing is confirmed but the BitDAO community would like to confirm proof of funds from Alameda,” tweeted Ben Zhuo.
The community that is behind BITDAO, which is backed by the cryptocurrency exchange Bybit, the venture capital firm Pantera, the billionaire Peter Thiel, and a number of other funds, has requested that the trading firm Alameda provide evidence that they continue to hold 100 million BIT tokens, which they acquired in November of the previous year by converting 3.36 million FTT tokens. As part of the agreement to exchange tokens, Alameda was expected to keep them for a period of at least three years.
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Bittrex Charged For Violating Sanctions, US Treasury Agrees To Settle
The post Bittrex Charged For Violating Sanctions, US Treasury Agrees To Settle appeared first on Coinpedia Fintech News
The Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) of the United States Treasury Department reported on October 11 that they had settled charges with the crypto exchange Bittrex. The cryptocurrency exchange was charged with breaking sanctions and failing to establish appropriate sanctions compliance measures from March 2014 to December 2017.
The violations were caused by transactions from “individuals reportedly situated in the Crimea area of Ukraine, Iran, Sudan, Cuba, and Syria,” according to US Treasury regulators. U.S. officials state that the transactions added up to $263M worth of cryptocurrency transactions that were in violation of the country’s financial sanctions.