The former CFO of Terraform Labs, Han Chang-joon, has been extradited from Montenegro to South Korea, following his arrest alongside Terra co-founder Do Kwon in March 2023 for attempting to travel with falsified documents. Montenegro’s Ministry of Justice approved the extradition request from South Korea, and Han Chang-joon has been handed over to South Korean authorities, according to an official statement.
According to the report, both were sentenced to four months in prison by a Montenegro court. Han has now been handed over to South Korean authorities to face criminal proceedings related to fraud in financial investment services, investments, and the capital market, with the possibility of a life sentence. In the meanwhile, Do Kwon remains in custody in Montenegro as Ministry of Justice has not decided to send him to the US or South Korea.
The U.S. and South Korea have both sought his transfer to face criminal charges over the collapse of Terraform Labs in May 2022. However, Do Kwon’s legal defense team has requested a delay in the Securities and Exchange Commission trial against him for a personal appearance in court.
In December, Montenegro’s appeals court canceled the previously approved extradition of Do Kwon to South Korea and the U.S. The SEC charged Terraform Labs and the former CEO last February over the collapse of TerraUSD and Luna, wiping out $40 billion of investor wealth. South Korean prosecutors accused Do Kwon and Terra affiliates of similar charges. The extradition developments mark a significant chapter in the legal proceedings surrounding the downfall of the multibillion-dollar crypto enterprise.
In response to the lawsuit from the SEC, Terraform Labs has taken a strategic step by filing for bankruptcy. Typically, challenging the SEC involves posting a “supersedeas bond,” equivalent to 110% of the total judgment, before proceeding with an appeal. However, by invoking Chapter 11 bankruptcy protections, Terraform Labs aims to sail this process without the immediate financial burden of posting such a huge bond. It’s a move to handle legal challenges more effectively.
Will this latest development impact Do Kwon’s case further, only time will tell. Till then stay tuned for more updates.