Terraform Labs Says Do Kwon’s Investigation is Driven by Politics

Terraform Labs (TFL) has accused the South Korean prosecutor’s office of abuse of power.

In a statement to The Wall Street Journal, a company representative has emphasized that the LUNA digital asset is not de jure a security, and therefore is not subject to relevant legislation.

The company has stated:

“We believe that the case is highly politicized, and the actions of the Korean prosecutors demonstrate an injustice and a failure to uphold the fundamental rights guaranteed by South Korean law.”

Terraform Labs has suggested that prosecutors expanded the definition of a security in response to public pressure.

A South Korean court issued earlier this month an arrest warrant for CEO Do Kwon and five other people.