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South Korean prosecutors might be overreaching their authority as the LUNA token wasn't legally a security, a spokesperson for Terraform Labs told the Wall Street Journal in a letter.
The firm says the token isn't covered by South Korea's capital-markets law, and, therefore, Terraform Labs couldn't violate local laws. The spokesperson added:
"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."
Even though the spokesperson declined to detail Terra's founder location, they said that Do Kwon and his relatives are still facing "ongoing physical security risks."
The move comes after Do Kwon was included in Interpol's top wanted list. South Korean officials say that Interpol issued a Red Notice for Kwon due to violation of capital-markets law. Prior to the charges, the Terra co-founder left South Korea and was hiding Singapore, claiming he was not "on the run."
