- The former CFO of Terraform Labs was surrendered to South Korean authorities by Montenegro for criminal proceedings related to financial investment fraud.
- This follows Terraform Labs’ bankruptcy filing in the US amid an ongoing securities fraud case brought by the SEC against the company and its CEO Do Kwon.
- The former CEO Do Kwon has successfully delayed his deportation to the US due to procedural issues.
Former CFO Handed Over to South Korean Authorities
After successfully appealing an extradition order that would have seen the former CEO of Terra sent to the United States for trial, Do Kwon now faces the deportation of his former Chief Financial Officer (CFO).
According to reports, authorities in Montenegro have now handed over the business partner of Kwon to judicial and police authorities in South Korea.
J.C.H. was handed over to the competent judicial and police authorities in South Korea today in order to conduct criminal proceedings for more criminal offenses related to financial investment fraud services.
Montenegro PoliceJ.C.H. are the initials of the former CFO, a Reuters report revealed the full name as Han Chang-joon. The news comes only days after Terraform Labs filed for bankruptcy in the US amid proceedings with the Securities and Exchange Commission (SEC).
The SEC brought a securities fraud case against Kwon and Terraform Labs, alleging violations of US law related to the registration of two digital currencies. A federal judge ruled in favour of the SEC, finding Terraform Labs and Kwon in violation. The case is set to go to trial on the SEC’s remaining fraud claims.
Is Do Kwon Facing the Music in the US or South Korea?
Regarding Do Kwon’s case, it appears the SEC is willing to wait as long as necessary. Two weeks ago, the financial watchdog agreed to postpone the civil trial until the extradition to the US is sorted.
Kwon and his CFO had been arrested in Montenegro in March 2023 with fake passports – Kwon faces extradition requests from both the US and his native South Korea.
While the deportation to the US seemed to go ahead in late 2023, Kwon was able to delay this based on procedural issues.
Despite being internationally sought with an Interpol Red Notice, Kwon managed to set up a business in Montenegro before attempting to flee to Dubai.
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