In a serious improvement for the continued investigation into the spectacular crash of Terraform Labs and its algorithmic stablecoin TerraUSD, Han Chang-joon, the corporate’s former chief monetary officer, has been extradited to South Korea. This follows his arrest alongside co-founder Do Kwon in March 2023 in Montenegro whereas trying to flee on a non-public jet utilizing solid paperwork.
Extradition Permitted: South Korea Pursues Prices
Montenegro’s Ministry of Justice approved the extradition, permitting South Korean authorities to pursue “criminal proceedings for several criminal offenses related to fraud in financial investment services, investments and the capital market.” These costs carry a possible life sentence in South Korea.
Kwon, nevertheless, stays in Montenegro as he appeals the court docket’s determination to uphold his conviction for passport forgery. Each South Korea and the US have requested his extradition in relation to the $60 billion collapse of TerraUSD in Might 2022. The algorithmic stablecoin’s depegging from the US greenback triggered a domino impact, impacting main gamers like crypto fund Three Arrows Capital and trade FTX.
Goran Rodic, the lawyer representing each executives, mentioned:
“We are still waiting for the decision about Do Kwon, following our appeal.”
Han’s extradition comes after finishing a separate four-month jail sentence in Montenegro for the passport forgery cost. Terraform Labs, which filed for Chapter 11 chapter within the US in January, didn’t reply to requests for remark.
LUNAUSD at present buying and selling at $0.6486 on the day by day chart: TradingView.com
From Success To Scandal: The Terraform Downfall
The saga started in 2018 when Kwon based Terraform Labs with Daniel Shin. Over the subsequent 4 years, the corporate and TerraUSD gained important traction. Nonetheless, Might 2022 witnessed the stablecoin’s dramatic decoupling from the greenback, resulting in its implosion.
South Korean authorities issued an arrest warrant in September 2022 in opposition to Kwon and 5 others, accusing them of violating capital markets legal guidelines. Interpol adopted up with a crimson discover for Kwon’s arrest quickly after.
DL News journalists tracked Kwon’s actions in January 2023 following studies inserting him in Serbia. Their subsequent investigation led to the arrest of Kwon and Han in Montenegro for utilizing solid Costa Rican passports.
With Han now going through legal proceedings in South Korea, authorized consultants anticipate elevated stress on Kwon to give up or negotiate. His testimony and potential cooperation may supply essential insights into the monetary choices and actions that contributed to the Terra ecosystem’s demise.
Nonetheless, the authorized path ahead stays unsure. Kwon’s extradition enchantment may considerably delay decision for each him and traders. Furthermore, the result of those proceedings may set precedents for regulatory frameworks and accountability measures inside the cryptocurrency trade.
The extradition of Han Chang-joon marks a major milestone within the ongoing investigation into the Terraform Labs collapse. Whereas it raises hopes for accountability and a clearer understanding of the occasions resulting in the $60 billion implosion, the destiny of Do Kwon and the final word authorized ramifications stay to be seen.
Featured picture from AP-Yonhap, chart from TradingView
