Former Terraform Labs CFO Extradited to South Korea for Crypto Fraud

Han Chang-joon, former CFO of Terraform Labs, has been extradited to South Korea to face charges of financial fraud in the crypto industry. This marks a significant international effort to combat digital asset fraud.

In March 2023, Han Chang-joon was arrested for attempting to travel with falsified papers. He was extradited from Montenegro to South Korea on February 5 after being held in jail for four months in Montenegro. The extradition process began with his arrest at the Podgorica airport, along with Do Kwon, the co-founder of Terraform Labs, as they tried to board a flight to Dubai using fake Costa Rican passports. The search for these individuals lasted over six months worldwide.

Chang-joon’s extradition was made possible by a decision from the Ministry of Justice of Montenegro. He is returning to South Korea to face accusations of fraud in financial investment services, investments, and the capital market. These allegations are related to the collapse of the Terra blockchain in 2022, which resulted in a loss of $60 billion and had a significant impact on the cryptocurrency sector, including the dissolution of companies like Three Arrows Capital and FTX.

Meanwhile, Do Kwon is facing extradition procedures to the United States. He is accused of multiple felonies, including commodities fraud, securities fraud, wire fraud, and conspiracy to deceive and participate in market manipulation. The Securities and Exchange Commission (SEC) has also filed charges against Terraform Labs and Kwon in connection with the collapse of TerraUSD and Luna, causing a loss of approximately $40 billion worth of investor money.

This case highlights the global legal challenges and complexities involved in addressing fraud within the rapidly growing cryptocurrency industry. It also demonstrates the coordinated efforts of multiple countries in apprehending and extraditing individuals charged with significant financial crimes, setting precedents for future cases in the digital asset sector.

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