Ex-CFO of Terraform Labs Deported to South Korea for Facing Fraud Allegations

By: Isha Das

Han Chang-Joon, the former chief financial officer of Terraform Labs has reportedly been deported from Montenegro to South Korea for ensuing legal proceedings. He is referred to as J.C.H and was accused of financial investment fraud services. Terraform Labs co-founder, Daniel Shin is also undergoing a similar trial in Seoul for fraud, illicit fundraising, and infringement of capital market laws, however he asserts his innocence and disclaims any involvement in the crypto company's collapse.

Terrasform Labs recently announced its application for bankruptcy protection in the United States. The company claims that this is a strategic initiative aimed at safeguarding its business, facilitating financial restructuring in the wake of potential enforcement actions by the U.S. Securities and Exchange Commission (SEC).

Do Kwon, the founder of Terraform Labs, remains elusive with no additional details available. Reports suggest that Kwon and Han were arrested in Montenegro for attempting to journey to Dubai using counterfeit Costa Rican passports. They were slapped with charges of forgery and the use of false passports by Montenegrin authorities.

Kwon is currently confronting fraud allegations in both the United States and South Korea. These are associated with the TerraUSD stablecoin epidemic that resulted in estimated losses of $40 billion for investors and considerable disruptions in the worldwide crypto market. Kwon's extradition to the U.S. or South Korea is forthcoming with the final decision resting on the Montenegro's justice minister.