In a significant development, Montenegro has extradited Han Chang-joon, a business partner of South Korean entrepreneur Do Kwon, also known as the “Cryptocurrency King.” Han Chang-joon has been in custody in Montenegro for the past year and was sentenced to four months in prison in June 2023 for attempting to board a plane to Dubai with forged passports. He was handed over to South Korean officials at the airport in Podgorica on February 5, based on an international warrant issued by Interpol.
Do Kwon, the co-founder of TerraformLabs, the company behind the now-infamous stablecoin TerraUSD, remains in custody in Montenegro. He is wanted in both the United States and South Korea for his alleged involvement in the loss of investments worth over $40 billion and orchestrating a multibillion-dollar crypto-asset securities fraud. Kwon had applied for a Costa Rican passport while in Singapore, claiming that he was unaware it was forged.
Extradition decision pending for Do Kwon
While Kwon had previously agreed to be extradited to South Korea, the final decision regarding his extradition rests with Montenegro’s Justice Minister, Andrej Milovic. As of now, this decision has yet to be made, leaving Kwon’s fate in limbo.
TerraformLabs, the company founded and headed by Do Kwon, faced severe consequences after the collapse of TerraUSD in May of the previous year, which sent shockwaves throughout the cryptocurrency market. The U.S. Securities and Exchange Commission (SEC) subsequently charged Kwon with orchestrating a multibillion-dollar crypto-asset securities fraud, resulting in an eight-count indictment against him in the U.S. District Court in Manhattan. The charges include securities fraud, wire fraud, commodities fraud, and conspiracy. In response, Kwon’s firm filed for bankruptcy protection in the United States.
In South Korea, Do Kwon faces fraudulent, unfair trading and fraud charges. This legal battle has only added to the complexity of his situation, with authorities in both countries seeking his extradition to face justice.
TerraformLabs’ co-founder, Daniel Shin, was also entangled in South Korea’s legal troubles. In April, he was indicted for violations of capital markets law, further intensifying the legal scrutiny surrounding the company and its key figures.
International fallout and implications
The extradition of Han Chang-joon to South Korea represents a crucial step in the ongoing investigations and legal actions against individuals associated with TerraformLabs. It underscores the importance of international cooperation in addressing alleged financial misconduct on a significant scale.
However, the situation remains fluid, with Do Kwon’s extradition decision still pending in Montenegro. It raises questions about which jurisdiction will prosecute him and what penalties he might face if found guilty.
The extradition of Han Chang-joon to South Korea marks a significant development in the ongoing legal proceedings surrounding the collapse of TerraUSD and allegations of financial misconduct involving Do Kwon and his associates. While Han Chang-joon’s return to South Korea has been accomplished, the fate of Do Kwon remains uncertain as Montenegro’s Justice Minister weighs the extradition decision. As both the United States and South Korea seek justice for the alleged loss of billions of dollars, the global cryptocurrency community watches closely for the outcome of these high-stakes legal battles.
