Terra Classic (LUNC), the renamed native token of the Terra blockchain that dramatically imploded last year, is not a security, a Korean court has ruled.

"It is difficult to see LUNC as a financial investment product regulated by The Capital Markets Act," the Seoul Southern District Court ruled again on Feb. 16, according to a report from local news outlet Ilyo Shinmun today. The court had earlier ruled it on Nov. 15, but both rulings have been only revealed today by the news outlet.

The latest ruling is the first time the court has categorically expressed LUNC is not a security as opposed to its previous expressions, such as "there is room for dispute in terms of the law" and "it is questionable whether the Capital Market Act can be applied," per the report.

Given the latest ruling, South Korean prosecutors cannot seize Terraform Labs co-founder Shin Hyun-Seung's (aka Daniel Shin's) assets as the court rejected their request, according to the report.

(by Yogita Khatri)