Ex-Terraform Labs CFO Hit with Fraudulent Marketing Charges

The former CFO of Terraform Labs is reportedly accused of touting the Terra Luna stablecoin and misleading investors.

Police man seeing a giant fraudster with millions of coins collected.
Created by Kornelija Poderskytė from DailyCoin
  • Former Terraform Labs CFO is facing legal charges in South Korea.
  • The former CFO was recently extradited from Montenegro.
  • Do Kwon’s extradition attempts have once again encountered obstacles.

The ongoing legal efforts seeking accountability for the 2022 Terra Luna collapse have recently intensified, with authorities making headway in the pursuit of the actors responsible. On February 6, Do Kwon’s CFO, Han Chang-joon, was extradited to South Korea following the government’s year-long attempts since his arrest in Montenegro in March 2023.

Now, Chang-joon might face his first set of charges for his role in the financial crisis as he dances to the tune of justice.

Ex Terraform Labs CFO Slapped with Charges

According to local reports on Thursday, February 9, South Korean authorities have charged the former Terraform Labs CFO with the fraudulent touting of the Terra stablecoin to defraud investors.

The allegations center on Chang-joon’s participation in the fraudulent scheme, which was orchestrated in collaboration with Do Kwon and others, which led to the loss of over 53.6 billion Korean won for investors.

If convicted, Han Chang-joon faces a potential lifetime prison sentence. 

While the former Terraform Labs CFO’s fate might be set in stone, efforts to apprehend the gang head, Do Kwon, have proven abortive.

Do Kwon Escapes Extradition, Again 

On Wednesday, February 8, the Montenegro Court of Appeal overturned the Podgorica High Court’s approval of Do Kwon’s extradition.

This marks the second time the fallen crypto mogul and his legal team have scored a victory against the ongoing attempts to facilitate his return to the United States or his homeland, South Korea.

Highlighting shortcomings surrounding the approval of Do Kwon’s extradition request, the Appellate court faulted the questionable manner of the petition’s arrival and the violation of Article 386 provisions.

Do Kwon’s extradition has been further stalled, granting the former Terraform Labs CEO additional time to devise new maneuver tactics.

Find out more about the charges against Do Kwon:
Do Kwon Faces Strengthened Allegations as ex-Terra Dev Testifies 
Read more on the use of crypto in illicit financing and calls for tailored regulations: 
US Treasury Flags Crypto and DeFi Enablers of Illicit Acts

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.