Terraform Labs Former CFO Extradited From Montenegro to South Korea

Terraform Labs' former chief financial officer, Han Chang-joon, has been extradited from Montenegro to South Korea.

In an official announcement referring to Han Chang-joon by his initials "J.C.H.", Montenegro's Ministry of Justice stated that he 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 Ministry of Justice noted that the former Terraform Labs CFO faces charges in South Korea relating to "multiple offenses related to fraud in financial investment services, investments and the capital market." If he's found guilty, he could be facing a lifelong jail sentence.

In a tweet, the Ministry of Justice stated that the extradition had been carried out at the request of South Korea. Han Chang-joon was extradited following the completion of his four-month prison sentence in Montenegro for attempting to travel using forged documents.

Han Chang-joon was arrested alongside Terraform Labs co-founder Do Kwon in March 2023. Kwon became the subject of a jurisdictional tug-of-war between the U.S. and his native South Korea before Montenegro agreed to extradite him to the U.S., where he faces charges including eight criminal counts of fraud.

The charges relate to the collapse of the Terra ecosystem in May 2022, after the platform's algorithmic stablecoin TerraUSD (UST) lost its dollar peg and collapsed in value, dragging down the ecosystem's LUNA governance token alongside it. The contagion from Terra's downfall sparked a lengthy bear market, and has been linked to the subsequent collapse of crypto exchange FTX.

Kwon, who remains in custody in Montenegro, also faces a civil lawsuit from the U.S. Securities and Exchange Commission (SEC), which accused him of "orchestrating a multi-billion dollar crypto asset securities fraud."

Last month, the former Terraform CEO requested an adjournment of his SEC trial to mid-March, which would give him time to finish his sentence in Montenegro and be present and be extradited to the U.S..

Edited by Stacy Elliott.