Terraform Labs CFO Han Chang-joon Extradited to South Korea for Legal Proceedings
Do Kwon, the CEO and co-founder of Terraform Labs, is set to travel to the USA to face charges brought by the SEC. Another executive from the firm namely Chief Financial Officer Han Chang-joon has also been released from Montenegro and sent to South Korea.
His extradition has been confirmed by the police officials at Montenegro in a website statement. A spokesperson for the police department confirmed the identity of the accused when speaking with Reuters.
He was first apprehended at Podgorica, when he was attempting to travel with Do Kwon on 23rd March. The police report indicates that officials confiscated forged passports from the duo that they were planning to board a private jet headed for Dubai.
Police officials have also stated that NCB Interpol of Podgorica and a special police unit handed JCH in the custody of the judicial police department of South Korea. He was charged with various counts of fraud.
Do Kwon May Face Up to 40 Years in Prison
Police officials have noted in their reports that Kwon may face up to 40 years behind bars. Meanwhile, his partner Han is serving a life sentence in South Korea. Local media outlet KBS reported that both Han and Kwon served 4 months behind bars in Montenegro on account of attempting to travel using fake passports.
The report also suggests that both executives were located in Serbia and Kwon had plans to open a new business.
However, Interpol issued a red notice for his arrest in South Korea. Kwon had been on the run since September 2022 after the de-pegging of Terraform Labs issued stablecoin USTC in May 2022. Since that time, investors who suffered considerable losses tried to track Kwon in an attempt to hold him accountable.
At the same time, authorities also took action against the executive and charged him with various counts of fraud. Kwon was finally located and arrested in Montenegro. After that, a series of legal battles ensued that finally led to the Montenegro court approving his extradition to the USA in December 2023.
SEC to Start Trial Against Do Kwon
SEC prosecutors are now awaiting the arrival of Kwon in the United States. Once there, the executive is expected to face 8 counts of fraud allegations.
Kwon’s lawyers are making preparations to respond to purported charges of breaching commodities law, securities regulations, wire fraud, conspiracy to commit fraud, and performing market manipulation. Terraform Labs filed for bankruptcy in the USA on 21st January, 2024.
Kwon’s Legal Team also Filed a Motion Against Citadel Securities
On 10th October, 2023 Kwon’s legal team filed a motion against Citadel Securities for playing an important role in depegging the TerraUSD stablecoin. Filings at the Southern District Court of Florida alleged that third-party investors intentionally shorted the UST stablecoin which led to its value falling from $1 to $0.02.
The filing also rejected the idea that the de-pegging happened on account of any instability in the USTC stablecoin project’s algorithm.
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