Prosecutors Seek Arrest Warrant for Han Chang-jun, Close Associate of Kwon Do-hyung in 'Terra-Luna Incident'

The prosecution has requested an arrest warrant for Kwon Do-hyung (32), CEO of Terraform Labs, and Han Chang-jun (37), former Chief Financial Officer (CFO) of Terraform Labs Korea, who is one of the key suspects in the so-called 'Terra·Luna incident.'

The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office announced on the 7th that it had requested an arrest warrant for Han, who was extradited to Korea the previous day on charges including fraudulent trading under the Capital Markets Act.

The pre-arrest suspect interrogation (warrant hearing) will be held on the 8th at 10:30 a.m. at the Seoul Southern District Court, presided over by Judge Kim Ji-suk, who is in charge of warrants. According to the prosecution, Han is accused of deceiving investors by making it appear that the Terra project was functioning normally, selling and trading Luna coins, and obtaining at least 53.6 billion KRW in illicit profits.

Terra promoted the Terra coin as a 'stable coin' (value-stabilizing coin) whose price is fixed by an algorithm and claimed it could secure demand even from real-world e-commerce companies. However, blockchain payment services are not permitted under financial regulations, making the project impossible from the start. The prosecution believes that Han, along with other accomplices, deceived global investors into believing the project was progressing successfully.

Han is also charged with soliciting and selling securities, such as selling Luna coins without submitting a securities registration statement, and unlawfully leaking about 100 million electronic financial payment records of ChaiPay customers by recording them on the Terra blockchain without consent.

Han fled overseas in April 2022, just before the Terra·Luna crash, and was arrested by local police in Montenegro last March while attempting to board a flight to the United Arab Emirates (UAE) using a forged passport. The Ministry of Justice requested extradition immediately after the arrest and, in cooperation with Montenegrin authorities, received custody of Han at a transit point the previous day local time.

This content was produced with the assistance of AI translation services.