Han Chang-joon Detained:
- Former Chief Financial Officer of Do Kwon’s Terraform Labs Korea, Han Chang-joon, has been detained following an arrest warrant issued by the Seoul Southern District Court.
- The court cited concerns over Han’s potential flight risk amidst the ongoing investigation into the Terra-Luna cryptocurrency scandal.
Charges Against Han Chang-joon:
- Han faces charges that include violations of the Capital Market Act, the Aggravated Punishment of Specified Economic Crimes Act, and the Electronic Financial Transactions Act.
- He is accused of generating at least 53.6 billion won ($40 million) in ill-gotten gains through a scheme that deceived investors worldwide.
- The prosecution alleges that Han and others misrepresented the Terra project’s viability and potential, promoting Terra Coin as a stable-value cryptocurrency suitable for real-world transactions despite knowing its inherent risks.
- Han is also accused of unauthorized sales of Luna coins without the requisite securities report filings and unauthorized disclosure of Chai Pay customers’ electronic financial payment information.
- Han was arrested in Montenegro in March 2022 while attempting to leave the country using forged documentation.
- His extradition to South Korea underscores the global nature of crypto operations and the international cooperation among law enforcement agencies in addressing alleged financial crimes.
Do Kwon Awaits Extradition:
- The detention of Han Chang-joon serves as a cautionary tale within the crypto industry, emphasizing the importance of regulatory compliance and the potential consequences of misleading investors.
- Attention is also focused on Do Kwon, who remains in custody in Montenegro.
- The decision regarding his extradition to either the United States or South Korea is eagerly awaited.