Terraform Labs Case: Terra Luna Founder Extradited To South Korea, Do Kwon Still Waiting For Court Decision

JAKARTA - Han Chang-Joon, a former Terraform Labs financial official, has been extradited from Montenegro to South Korea, after being arrested along with his co-founder, Do Kwon, in March 2023. Both were involved in the Terraform Labs scandal, a crypto project that collapsed in May 2022 and cost thousands of investors.

According to a report from CoinShares, Terraform Labs is one of nine US banks that offers spot-based crypto services, namely buying and selling crypto assets directly, in contrast to other futures-based products. Spot-based crypto products are considered more attractive to investors, as they provide more direct and cheaper exposure to crypto asset prices.

Han Chang-Joon's Arrest And Extradition

Han Chang-Joon and Do Kwon were arrested at Podgorica airport, the capital Montenegro, while trying to escape using a fake passport from Costa Rica. They were later sentenced to four months in prison by the Montenegro court for the crime.

In February 2024, the Ministry of Justice Montenegro decided to extradite Han Chang-Joon to South Korea, according to a request from South Korean authorities. This was announced by the Montenegro police through their official website.

"JCH ( Han Chang-Joon initials) is extradited to allow South Korean authorities to start criminal proceedings for several criminal acts related to fraud in financial investment, investment and capital markets services, which could be punished with life sentences in South Korea," said police statement Montenegro.

In South Korea, Han Chang-Joon will face criminal charges for his involvement in the Terraform Labs scandal, which allegedly cost investors $1.7 billion or around IDR 26.7 trillion (USD 1 exchange rate = IDR 15,700).

Do Kwon's Fate Is Still Unclear

Meanwhile, Do Kwon, co-founder and former CEO of Terraform Labs, is still awaiting a decision by Montenegro's court on his appeal to extradition. Do Kwon is wanted by South Korean and US authorities, who accuse him of committing various crimes, including commodity fraud, securities fraud, wire fraud, and conspiracy to deceive and manipulate the market.

Do Kwon also faces a lawsuit from the US Securities and Exchange Commission (SEC), which claims that Terraform Labs violated securities laws by selling unregistered crypto tokens. The SEC has joined Do Kwon's request to postpone the lawsuit process until Do Kwon's arrival in the US.

Terraform Labs scandal is one of the biggest cases in the history of the crypto industry, which has made the public question about security, trust, and regulation in the sector. Han Chang-Joon's extradition and the fate of Do Kwon will be a turning point in law enforcement against cryptocriminals at the global level.