In a surprising twist, Han Chang-joon, the former CFO of Terraform Labs, has been extradited from Montenegro to South Korea. This follows his arrest with Terra co-founder Do Kwon in March 2023 for trying to travel with falsified documents. Montenegro’s Ministry of Justice approved the extradition request, officially handing Han Chang-joon over to South Korean authorities.
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Montenegro’s Ministry of Justice gave the green light, resulting in Han Chang-joon’s handover to South Korean authorities. Both were sentenced to four months in prison by a Montenegro court. Han now faces charges in South Korea related to fraud in financial investment services, investments, and the capital market, carrying the potential for a life sentence.
Do Kwon’s Uncertain Fate
While Han Chang-joon faces charges in South Korea, Do Kwon remains in Montenegro’s custody. The Ministry of Justice is yet to decide whether to send him to the US or South Korea. Both countries seek his transfer due to criminal charges linked to the collapse of Terraform Labs in May 2022. Do Kwon’s legal defense team successfully requested a delay in the SEC trial for his personal appearance in court.
In a December twist, Montenegro’s appeals court canceled Do Kwon’s approved extradition to South Korea and the US. The SEC charged Terraform Labs and the former CEO last February, causing a $40 billion investor loss. South Korean prosecutors leveled similar charges.
Terraform Labs’ Strategic Move
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.
Read More: Terraform Labs Bankruptcy Filing a Move to Fight $Billion SEC Charges?
Will extradition proceedings take a new turn, or will Terraform Labs weather the storm through bankruptcy? Time will tell!