Montenegro Extradites Terraform Labs Former CFO To South Korea

Han Chang-joon, ex-CFO at the now-defunct Singapore-based crypto company Terraform Labs who worked alongside CEO Do Kwon, has been extradited to South Korea by Montenegrin authorities.

Former Terraform CFO Faces Life Imprisonment

Montenegro has acted upon South Korea’s request and deported former Terraform Labs CFO, Han Chang-joon.

In a Monday announcement, Montenegro’s Ministry of Justice revealed that Han, referred to by his initials “J.C.H”, had been handed over by officials of the NCB Interpol Podgorica and the Special Police Unit to the “competent judicial and police authorities of South Korea.”

The Justice Ministry indicated that Han faces charges in South Korea relating to “several criminal offenses related to fraud in financial investment services, investments and the capital market.” If he’s found guilty, he could spend the rest of his life behind bars.

The ex-Terraform Labs CFO was apprehended at the Podgorica airport alongside Terra co-founder Do Kwon in March 2023 while attempting to travel to Dubai with forged passports. The two were each slapped with a four-month prison sentence by a Montenegrin court a couple of months later. 

Do Kwon Awaits Extradition Decision

Han was extradited to South Korea after completing his four-month sentence. Kwon, however, remains in custody in Montenegro as authorities determine where to deport him. The United States and his home country, South Korea, have been jockeying for the chance to extradite him.

In the U.S., prosecutors have charged Kwon with eight counts of fraud for his role in the implosion of the Terra ecosystem in May 2022. At the time, Terra’s algorithmic stablecoin and its sister token LUNA fell effectively 100% to zero, triggering a protracted bear market, and has been connected to the subsequent implosion of Sam Bankman-Fried’s exchange FTX.

Kwon is also mired in a lawsuit with the U.S. Securities and Exchange Commission (SEC), which accused him in February 2023 of “orchestrating a multi-billion dollar crypto asset securities fraud.”

In January 2024, Kwon’s defense team requested a delay of his SEC trial to mid-March, so that he could make a personal appearance.

Han’s extradition follows Terraform Labs’ filing for Chapter 11 bankruptcy protection in the United States, a move it believes will aid in its legal wrangle with the SEC.