Montenegrin authorities have extradited former Terraform Labs (TFL) CFO Han Chang-jung to South Korea. According to the statement, Zhong was transferred “for the purpose of prosecuting several criminal offenses related to financial services, investment and capital markets fraud.” The document clarifies that such offenses in South Korea might face life imprisonment.
On March 23, 2023, Montenegro police arrested Zhong and ex-CEO TFL Do Kwon while trying to fly from Podgorica airport to Dubai using fake documents. Kwon’s detention occurred at the request of law enforcement agencies in the United States, Singapore and South Korea. Earlier, the media, citing the Seoul prosecutor’s office, reported that he was hiding in Serbia.
Both Defendants Pleaded Not Guilty
South Korean authorities called on Montenegro to expel the head of TFL to his homeland. The United States is also seeking extradition, where he faces fraud charges from the SEC and the New York Federal Prosecutor’s Office.
In November, Montenegro’s High Court approved Kwon’s extradition, giving Justice Minister Andrej Milovic the opportunity to choose his country. Later, the media reported that he was leaning towards the United States on the issue of extradition. However, in December, an appeals court overturned the decision to transfer Kwon to the United States or South Korea.
Let us recall that on January 11, 2024, the co-founder of TFL asked the US court to postpone the process against the SEC because he wanted to personally attend it, but could not do so due to the delay in extradition. The court granted the defendant’s request and moved the hearing date to March 25.
LUNA Investors reacted positively to the News, expecting a Revival of the Project
At the same time, investors reacted positively to this news, and the LUNC coin rate soared by 20% over the past few days. Authorities in Montenegro handed Han to South Korean authorities to face criminal charges related to financial services, investment and capital market fraud – crimes that can lead to life imprisonment in South Korea. Meanwhile, there is no verdict on Do Kwon’s extradition yet. Further comments from Kwon and Han’s lawyers are expected as the proceedings continue.
Terraform Labs filed for Bankruptcy on January 21st
It was reported a few weeks back that Terraform Labs filed for bankruptcy, and the bankruptcy procedure will allow Terraform to simultaneously continue supporting the ecosystem and legal proceedings with the US Securities and Exchange Commission (SEC) and regulators in Singapore. “The Terra community and ecosystem have demonstrated unprecedented resilience in the face of adversity, and this action is necessary so that we can continue to work toward our collective goals while addressing remaining legal issues,” commented Chris Amani, CEO of Terraform Labs.
