Crypto’s Vexed Legal Status Clouds Case Facing Fugitive Kwon (2)

South Korean prosecutors trying to build a case against Do Kwon over the $60 billion wipeout of his crypto project made an eye-catching admission this month: the latest court decision seems to support his defense.

They made the comment after a judge rebuffed a request to detain a person linked to Kwon’s collapsed Terraform Labs ecosystem. Part of the judge’s reasoning was that it’s debatable whether the individual had violated the nation’s Capital Markets Act as prosecutors claim — a key charge Kwon also faces, and which he has rejected.

The development highlights disputes over whether the now-collapsed TerraUSD and …