Montenegro deports former Terraform Labs CFO to South Korea amid fraud allegations News ▸ South Korea ▸ Terra ▸ Legal
Montenegro deports former Terraform Labs CFO to South Korea amid fraud allegations
Do Kwon and Han Chang-joon were arrested last March for attempting to travel with fake documents.
2 min read
Updated: Feb. 6, 2024 at 12:09 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Montenegro has reportedly deported the former financial officer of Terraform Labs, Han Chang-Joon, back to South Korea to face criminal proceedings.
According to reports, law enforcement agencies referred to him as J.C.H. He was “handed over to the competent judicial and police authorities in South Korea today in order to conduct criminal proceedings for more criminal offenses related to financial investment fraud services.”
Daniel Shin, Terraform Labs co-founder, is facing a similar trial in Seoul for fraud, illegal fundraising, and violation of capital market laws. However, he has denied all charges and involvement in the collapse of the crypto company.
The deportation announcement closely follows Terraform Labs’ recent filing for bankruptcy protection in the United States. The company stated that this strategic move aims to safeguard its business, allowing for financial restructuring in anticipation of potential enforcement actions by the U.S. Securities and Exchange Commission (SEC.).
What next for Do Kwon
Meanwhile, the latest update on the fate of Do Kwon, the founder of Terraform Labs, remains elusive, with no new information provided by Montenegrin authorities.
CryptoSlate reported that Kwon and Han were apprehended in Montenegro for attempting to travel to Dubai using forged Costa Rican passports. Subsequently, the Montenegrin authorities charged them with forgery and the use of false passports, leading to their incarceration.
Kwon is facing fraud charges in both the United States and South Korea. The charges are linked to the collapse of the algorithmic TerraUSD stablecoin, which resulted in approximately $40 billion in losses for investors and triggered broader setbacks in the global crypto market.
Montenegro’s court has signaled Kwon’s extradition to either the U.S. or South Korea, pending a decision by the country’s minister of justice. Recent developments, however, indicate a potential journey to the U.S. Kwon has requested a trial delay until mid-March, suggesting an intention to participate in the proceedings on American soil.
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In this article
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.