Terra Developer Terraform Labs Fraud Case Sees Major Progress
Former CFO of Terraform Labs, Han Chang-joon, was extradited from Montenegro to South Korea on the 5th and is now facing a life sentence. Currently, he is being detained in Montenegro. Meanwhile, the founder of Terraform Labs, Do Kwon, is uncertain about his future.
(Prior Summary: The US SEC agreed to Do Kwon’s personal appearance request and postponed the trial of the fraud case to April.)
(Background Supplement: US court ruled that LUNA and MIR in the Terra case are “securities”! Do Kwon’s fraud case trial in January.)
Facing charges of cryptocurrency securities fraud, the founder of Terraform Labs, Do Kwon, and former CFO Han Chang-joon attempted to use fake passports during their escape in March last year. They were arrested in Montenegro and later sentenced to four months of imprisonment by the local court.
Han Chang-joon Extradited to South Korea
After serving their sentences, the Montenegrin police issued a statement on the 5th, announcing that Han Chang-joon has been handed over to the South Korean authorities at their request. This is to allow South Korea to prosecute him for several fraud-related criminal offenses. The Montenegrin police also tweeted a photo showing Han Chang-joon being handed over to the South Korean authorities by two masked police officers near the capital city of Podgorica.
According to Cointelegraph’s report, the South Korean police stated that Han Chang-joon is facing a life sentence, which is heavier than the requested sentence for Do Kwon. Do Kwon is facing a maximum of 40 years of imprisonment in South Korea.
As for Do Kwon, who is still in Montenegro, he remains in extradition detention. The Montenegrin authorities have not yet decided whether to extradite him to South Korea or the United States. Both countries have requested his extradition on fraud charges. Han Chang-joon and Do Kwon’s defense lawyer, Goran Rodic, have confirmed the news of Han Chang-joon’s extradition.
The Minister of Justice of Montenegro, Andrej Milovic, stated on Monday that he has not yet decided which country Do Kwon will be extradited to.
The US Securities and Exchange Commission (SEC) filed a lawsuit against Do Kwon in February last year. The trial was originally scheduled for January this year. However, after Do Kwon requested a delay and the opportunity to appear in court personally, the SEC submitted a document to the court last month, agreeing to postpone the trial until no earlier than March 18th.
Further reading:
US SEC agrees to Do Kwon’s personal appearance request, postpones fraud case trial to April
Do Kwon accused of intentional fraud by developers
Meanwhile, Do Kwon is also facing legal troubles in South Korea. Former Terraform Labs developer Lee testified in South Korea on Monday, accusing Do Kwon and another co-founder of Terraform Labs, Shin Hyun-seung (Daniel Shin), of promoting TerraUSD stablecoin as a potential payment option for investors, despite knowing that it violates South Korean regulations.
Previously, Shin Hyun-seung argued that South Korean regulatory agencies had not expressed a clear stance on using cryptocurrency as a payment method. He also claimed that he left Terraform Labs two years before the collapse of Terra in 2022 and had no involvement in the collapse.
Related reports:
Do Kwon’s extradition application to the US and South Korea revoked by Montenegrin court, sent back for retrial next year
Do Kwon spent the Lunar New Year in a Montenegrin prison! The US and South Korea compete for extradition, extending the detention period once again
LUNA Scandal: Do Kwon to be “extradited to the US for trial” instead of South Korea, according to Montenegrin Minister of Justice