In a recent development, Dalle-3Han Chang-joon, the former Chief Financial Officer of Terraform Labs, has been extradited to South Korea by Montenegrin Police. This news comes after Chang-joon completed his jail term. The Ministry of Justice in South Korea made the decision to extradite him, which was confirmed in an official release by the country’s police administration.
Chang-joon’s extradition follows his arrest, along with Terraform’s co-founder Do Kwon, at the Podgorica airport on March 23, 2023. This arrest came after a global manhunt, as Interpol issued a red notice, leading to intensified efforts by local authorities. Both Chang-joon and Do Kwon were sentenced to four months in prison for document forgery, with the time spent in detention being included in their sentence. Additionally, the court seized ID cards and multiple passports belonging to the duo.
Reports indicated that both Chang-joon and Do Kwon would remain in extradition custody until the South Korean request was reviewed. The Montenegrin Police handed over Chang-joon to the police and judicial authorities in South Korea, facilitated by the Special Police Unit and NCB Interpol Podgorica. The South Korean authorities will now proceed with criminal proceedings against Chang-joon for multiple offenses, including fraud allegations linked to the collapse of the Terraform Network in 2022. The severity of the charges is significant, as a life sentence is threatened in South Korea.
While Chang-joon’s extradition has been finalized, Do Kwon’s fate remains uncertain. He appealed a January decision for his extradition to either the United States or South Korea. The United States and South Korea have both filed for Do Kwon and other alleged accomplices to be extradited to face criminal proceedings related to the events leading up to May 2022. The decision regarding Do Kwon’s extradition request is still pending.
The collapse of Terra’s algorithmic stablecoin in 2022 was a significant blow to the market, wiping out approximately $60 billion and triggering controversy across the cryptocurrency industry. South Korean authorities issued an arrest warrant for Chang-joon and other accomplices in September, but they managed to evade capture. Interpol subsequently issued a red notice for Chang-joon’s arrest after he claimed not to be on the run. The collapse of Terra’s stablecoin was one of the notable incidents in 2022, alongside the bankruptcy filing of FTX, a digital asset exchange, which led to substantial losses for investors and investigations into the actions of company executives.
The extradition of Dalle-3Han Chang-joon, the former CFO of Terraform Labs, to South Korea marks a significant step towards holding individuals accountable for their involvement in fraudulent activities. The collaboration between Montenegrin and South Korean authorities demonstrates the international cooperation needed to combat financial crimes. As the criminal proceedings progress, it will be interesting to see the outcomes and potential ripple effects on the cryptocurrency industry. This case serves as a reminder that regulatory scrutiny and legal action are crucial in maintaining trust and protecting investors in the rapidly evolving crypto market.
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