Terraform Labs’ Former CFO Extradited to South Korea to Face Criminal Charges

After months of deliberation, Montenegrin authorities have extradited Han Chang-joon, Terraform Lab's Former Chief Financial Officer, to South Korea, according to a notice by the Government of Montenegro. This move occurred as the US and South Korea sought jurisdiction over Do Kwon's case following the collapse of Terraform Labs in May 2022.

Ongoing appeals

The extradition underscores the severity of the charges, as Chang-joon faces criminal proceedings in South Korea for various financial offenses. Meanwhile, Kwon's appeal regarding his extradition is pending a decision in Montenegro's Appeals Court, adding complexity to the legal matter.

Chang-joon and Kwon, the Co-Founder and Former CEO of Terraforms Labs, were arrested in March 2023 while attempting to travel with falsified documents. Subsequently, a court in Montenegro sentenced them to four months in prison, sparking a contentious legal battle over their extradition.

The notice from the Montenegrin authorities, translated from Serbian, stated: "This person was deprived of his liberty at Podgorica Airport in Montenegro on March 23, 2023, according to an international warrant issued by Interpol Seoul along with D.H.K. After serving a four-month prison sentence in Montenegro for the committed criminal offense of document forgery, he was extradited from Montenegro."

Terraform Labs' Legal Battles

Meanwhile, the legal saga surrounding Kwon recently took a dramatic turn when Montenegro's Appeals Court overturned a decision regarding his extradition to the US or South Korea. The reversal resulted from a procedural error wherein Kwon was denied the opportunity to present his defense against the extradition requests. This setback marked a crucial moment in Kwon's legal battle.

The judge overseeing the matter granted Kwon the chance to present his stance regarding the requests for extradition. Such an opportunity is mandated by the laws of Montenegro. Consequently, the case was referred back to the Podgorica Basic Court for a retrial, prolonging the legal uncertainty surrounding Kwon's fate.

Despite a previous decision by the Podgorica High Court approving Kwon's extradition, this latest development casts doubt on the process and timeline of his potential extradition. Besides that, Kwon and Terraform Labs are facing a class action lawsuit involving more than 300 parties. This lawsuit was filed in Singapore in the aftermath of the devaluation of the UST token.