Former CFO of Terraform Labs, Han Chang-joon, has been transferred to South Korea

Former Terraform Labs chief financial officer Han Chang-jun was extradited from Montenegro to South Korea on February 5, according to a police statement on the Montenegrin government website. Han was identified only as JCH in the statement, but an unnamed police spokesman confirmed his identity to Reuters.

Han was arrested on March 23 at the airport in the Montenegrin capital, Podgorica, along with former Terraform CEO Do Kwon, as they tried to board a private jet bound for Dubai using forged Costa Rican passports. According to the Montenegrin police statement:

“JCH was today handed over to competent South Korean judicial and police authorities by NCB Interpol Podgorica officers and special police units to conduct criminal proceedings for several fraud-related offences.”

Interestingly, the police statement revealed that Han faces life in prison in South Korea, which is more severe than the sentence Kwon was threatened with, according to a South Korean newspaper. A report on KBS World said Kwon could face up to 40 years in prison.

Han and Kwon spent four months in prison in Montenegro for falsifying their travel documents.

Today, the state of Montenegro acted on the request of South Korea, and according to the decision of the Ministry of Justice, Han Chang Joon was handed over to the competent authorities of his country of origin. pic.twitter.com/OvQ1qNyxr1

— Ministry of Justice of Montenegro (@PravdaCG) February 5, 2024

Despite an Interpol “red notice” issued for Kwon's arrest in South Korea, Kwon lived in Serbia, where he had set up a business.

Kwon was indicted in May 2022 in connection with the collapse of Terraform Labs' stablecoin ecosystem.

RELATED: Do Kwon may serve time in US and South Korean prisons, prosecutors say.

Their arrest has prompted calls to extradite Kwon, who is still in Montenegro. After various legal battles, a court in Montenegro ordered Kwon's extradition to the United States in December, where he faces eight charges, including securities fraud, securities fraud, wire fraud, and engaging in fraud and market manipulation.

The U.S. Securities and Exchange Commission joined Kwon's request to delay proceedings pending Kwon's appearance in the complaint filed against Terraform Labs and Kwon. The agency requested summary judgment in the case in November. Terraform Labs filed for bankruptcy in the United States on January 21.

Daniel Shin, also known as Shin Hyun-seong, the founder of Terraform Labs, blamed Terraform's failure on the protocol's operation when he was indicted for fraud in South Korea. [Do Kwon]He said.

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