Terra Developer Terraform Labs Fraud Case Makes Significant Progress
Terraform Labs former CFO Han Chang-joon was extradited from Montenegro to South Korea on the 5th and is facing life imprisonment. He is currently detained in Montenegro. Meanwhile, the future of Terraform Labs founder Do Kwon remains uncertain.
(Prior summary:
The US SEC agreed to Do Kwon’s request to personally appear in court and postponed the fraud case trial 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, Terraform Labs founder Do Kwon and former CFO Han Chang-joon were arrested in Montenegro in March of last year during their escape. They were arrested for attempting to pass through customs with fake passports. The two were later sentenced to four months’ imprisonment by the local court in Montenegro.
Han Chang-joon extradited to South Korea
After serving their sentences, on the 5th, the Montenegrin police issued a statement announcing that upon the request of the South Korean authorities, Han Chang-joon has been handed over to the South Korean authorities for criminal prosecution for multiple fraud-related crimes. The Montenegrin police also tweeted a photo showing Han Chang-joon being transferred to the South Korean authorities by two masked police officers near Podgorica, the capital of Montenegro.
According to Cointelegraph’s report, the South Korean police stated that Han Chang-joon will face life imprisonment in South Korea, which is even heavier than the sentence requested for Do Kwon. Do Kwon faces a maximum of 40 years in prison 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 charges of fraud. Han Chang-joon and Do Kwon’s lawyer, Goran Rodic, have confirmed the news of Han Chang-joon’s extradition.
Montenegrin Minister of Justice 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, but after Do Kwon submitted a motion to the court requesting a delay and to appear in person, the SEC submitted documents to the court last month, agreeing to postpone the trial date to no earlier than March 18th.
Further reading:
The US SEC agreed to Do Kwon’s request to personally appear in court and postponed the fraud case trial to April
Do Kwon accused of intentional fraud by developers
Meanwhile, Do Kwon is also facing legal troubles in South Korea. Terraform Labs former developer Lee testified in court in South Korea on Monday, accusing Do Kwon and another Terraform Labs co-founder Shin Hyun-seung (Daniel Shin) of knowing that stablecoin products were prohibited by South Korean regulations but still promoting TerraUSD stablecoin as a potential payment option to investors.
Previously, Shin Hyun-seung argued that the South Korean regulatory authorities did not express a clear position on the use of cryptocurrency as a means of payment. He also claimed that he left Terraform Labs two years before the collapse of Terra in 2022 and had no connection to the collapse.
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Related reports:
Do Kwon’s extradition applications to the US and South Korea revoked by the Montenegrin court, sent back for retrial next year
Do Kwon spent New Year’s Eve in a Montenegrin prison! US and South Korea competing for extradition, causing further extension of detention period
LUNA Fraud Incident: Do Kwon to be “extradited to the US for trial” instead of South Korea, revealed by Montenegrin Minister of Justice.