Former CFO of Terraform Labs Extradited to South Korea
In a major development for the investigation into the crash of Terraform Labs and its stablecoin TerraUSD, Han Chang-joon, the company’s former CFO, has been extradited to South Korea. He was arrested in March 2023 alongside co-founder Do Kwon in Montenegro while attempting to flee on a private jet with forged documents.
Extradition Approved: South Korea Pursues Charges
The Ministry of Justice in Montenegro has authorized the extradition, allowing South Korean authorities to pursue criminal proceedings against Han Chang-joon. These proceedings are related to fraud in financial investment services, investments, and the capital market. The charges carry a potential life sentence in South Korea.
Do Kwon remains in Montenegro as he appeals the court’s decision on his conviction for passport forgery. Both South Korea and the United States have requested his extradition in relation to the collapse of TerraUSD in May 2022, which had a significant impact on major players in the crypto industry.
“We are still waiting for the decision about Do Kwon, following our appeal.” – Goran Rodic, lawyer representing both executives
Han Chang-joon has completed a separate four-month prison sentence in Montenegro for passport forgery. Terraform Labs, which filed for Chapter 11 bankruptcy in the US, did not provide any comment on this development.
From Success To Scandal: The Terraform Downfall
Terraform Labs was founded by Do Kwon and Daniel Shin in 2018. The company and its stablecoin TerraUSD gained significant traction over the next four years. However, in May 2022, TerraUSD decoupled from the dollar, leading to its collapse.
In September 2022, South Korean authorities issued an arrest warrant against Do Kwon and five others for violating capital markets laws. Interpol also issued a red notice for Do Kwon’s arrest.
DL News journalists tracked Do Kwon’s movements in January 2023, leading to his arrest in Montenegro for using a forged passport. Han Chang-joon was arrested alongside him.
Increased Pressure and Uncertain Legal Path
With Han Chang-joon now facing criminal proceedings in South Korea, legal experts anticipate increased pressure on Do Kwon to surrender or negotiate. His testimony and potential cooperation could provide crucial insights into the events that led to the collapse of the Terra ecosystem.
However, the legal path forward remains uncertain as Do Kwon’s extradition appeal could significantly delay resolution for both him and investors. The outcome of these proceedings could also have implications for regulatory frameworks and accountability measures within the cryptocurrency industry.
Hot Take: Extradition of Han Chang-joon Raises Hopes for Accountability
The extradition of Han Chang-joon marks a significant milestone in the investigation into the collapse of Terraform Labs. It raises hopes for accountability and a clearer understanding of the events that led to the $60 billion implosion. However, the fate of Do Kwon and the ultimate legal ramifications are still unknown.
Featured image from AP-Yonhap, chart from TradingView
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