Former Terra CFO Detained in South Korea
The former Chief Financial Officer of Do Kwon’s Terraform Labs Korea, Han Chang-joon, 37, has been officially detained following the issuance of an arrest warrant by the Seoul Southern District Court. The court made this decision due to concerns over Han’s potential flight risk amidst the ongoing investigation into the Terra-Luna cryptocurrency scandal.
Terra CFO Charged in South Korea
Han Chang-joon, closely associated with Do Kwon, the founder of Terraform Labs Korea, is facing serious charges that include violations of multiple acts such as the Capital Market Act and the Electronic Financial Transactions Act. South Korean prosecutors allege that Han was involved in a scheme that deceived investors worldwide by misrepresenting the viability and potential of the Terra project.
Prosecutors claim that Han, along with Do Kwon and other co-conspirators, generated at least 53.6 billion won ($40 million) in ill-gotten gains by promoting Terra Coin as a stable-value cryptocurrency suitable for real-world transactions, despite knowing its non-viability.
The prosecution also alleges that Han conducted unauthorized sales of Luna coins without filing securities reports, violating securities regulations. Additionally, he is charged with unauthorized disclosure of Chai Pay customers’ payment information to the Terra blockchain, raising concerns about privacy breaches and data security.
International Arrest and Extradition
Han’s arrest in Montenegro last year highlighted the international dimension of this case. He was attempting to leave the country with forged documentation when arrested alongside Do Kwon. His recent extradition to South Korea underscores the global nature of crypto operations and international cooperation among law enforcement agencies.
Do Kwon Awaits Extradition
As legal proceedings continue against Han Chang-joon, attention is also focused on Do Kwon, who remains in custody in South Korea. The decision regarding his extradition to either the United States or South Korea is eagerly awaited.
Hot Take: Importance of Regulatory Compliance
The detention of Han Chang-joon serves as a cautionary tale for the crypto industry, emphasizing the importance of regulatory compliance and the potential consequences of misleading investors about cryptocurrency projects. It highlights the ongoing legal scrutiny faced by Terraform Labs and its executives and underscores the need for transparency and accountability within the industry.
Source: Newsis
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