TechFlow news, according to South Korean media reports, during the first-instance defense trial held at Seoul Southern District Court, the legal representative of Han Chang-joon, former CFO of Terra, stated that Han had parted ways with Do Kwon in 2020, and that the collapse of Terra and Luna was caused by the unreasonable operation of Anchor Protocol and external factors, which were unrelated to Han Chang-joon.
The lawyer also stated that the investigation into Han Chang-joon was based on the premise that "the Terra project was non-compliant from the beginning," but South Korea does not have regulations prohibiting virtual asset settlement services. Additionally, the lawyer denied the securities nature of cryptocurrencies, whereas South Korean investigative authorities consider cryptocurrencies to possess securities characteristics—this is the first case being tried for violation of the Capital Markets Act.
The lawyer argued: "Since Do Kwon could not be investigated, the prosecution began focusing its investigation on defendant Han Chang-joon around mid-July 2020. The core of the investigation should first determine the causes behind the price collapse of Terra and Luna before assigning responsibility to relevant individuals."
