Do Kwon’s business partner extradited on fraud charges

To South Korea, Montenegro has completed the extradition of Han Chang-joon, a key associate of the embattled South Korean crypto entrepreneur Do Kwon. Han, linked to the dramatic collapse of the TerraUSD stablecoin, was detained in Montenegro and served a four-month prison term for possessing forged passports. His extradition occurred at Podgorica airport on February 5, fulfilling an international warrant facilitated by Interpol.

Do Kwon, co-founder of TerraformLabs and often called the “Cryptocurrency King,” remains in Montenegrin custody. He faces charges in both the United States and South Korea related to his role in the catastrophic failure of TerraUSD, which erased over $40 billion in investor funds. Despite seeking a Costa Rican passport in an alleged attempt to evade capture, Kwon claims he was unaware of its illegitimacy.

The decision on Kwon’s extradition to South Korea is pending, with Montenegro’s Justice Minister, Andrej Milovic, yet to announce the outcome. Kwon’s willingness to face extradition to South Korea contrasts with the unresolved nature of his legal status in Montenegro.

TerraformLabs and its leadership have come under intense scrutiny following TerraUSD’s collapse in May of the previous year, prompting a broad investigation by regulatory authorities, including the U.S. Securities and Exchange Commission (SEC). The SEC has accused Kwon of a comprehensive fraud scheme, leading to multiple charges in the U.S. District Court in Manhattan. The fallout from these allegations has led TerraformLabs to seek bankruptcy protection in the U.S.

In South Korea, the legal challenges for Kwon are equally daunting, with accusations encompassing fraud and violations of trading laws. This international legal entanglement highlights the far-reaching implications of TerraformLabs’ downfall for Kwon and his associates like Daniel Shin, TerraformLabs’ co-founder, who faces legal issues in South Korea.

The extradition of Han Chang-joon is a pivotal moment in the unfolding saga of TerraformLabs and its founders. It exemplifies the global reach of law enforcement in tackling alleged financial crimes in the cryptocurrency sector. As the legal processes continue to unfold, the international community remains keenly interested in the outcome and its impact on the regulation and perception of cryptocurrency ventures.

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