'Arrest Warrant Issued for Han Chang-jun, Close Associate of Kwon Do-hyung in Terra·Luna Crash Case'

"Risk of Escape"

Han Chang-jun, Chief Financial Officer (CFO) of Terraform Labs, who fled overseas with Kwon Do-hyung, CEO of Terraform Labs and a key figure in the 'Terra·Luna' crash incident, was arrested on the 8th after being extradited to South Korea.

Kim Ji-sook, the judge in charge of warrants at the Seoul Southern District Court, conducted a pre-arrest detention hearing (warrant substantive examination) for Han, who is accused of fraudulent unfair trading under the Capital Markets Act, and issued an arrest warrant citing "risk of flight."

Prosecutors are conducting a pre-arrest detention hearing for Han Chang-jun, the Chief Financial Officer of Terraform Labs and one of the key figures in the 'Terra·Luna' crash incident, as he enters the Seoul Southern District Court on the morning of the 8th.
[Photo by Yonhap News]

Han is accused of deceiving investors by making it appear that the Terra project was operating normally, selling and trading Luna coins to obtain at least 53.6 billion KRW in illicit profits.

Terra promoted the Terra coin as a 'stable coin' whose price is fixed algorithmically 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 Han and other accomplices deceived global investors into believing the project was progressing successfully.

Han also faces charges of 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.

Prior to the Terra·Luna crash in April 2022, Han fled Korea with Kwon. In March last year, Han was arrested by local police in Montenegro for attempting to use a forged passport.

The Ministry of Justice requested the extradition of the suspects and, after consultations with Montenegrin authorities, received custody of Han and extradited him to South Korea on the 6th.

Kwon has appealed the Montenegrin court's decision approving his extradition. If the local court upholds the extradition decision, Milovi?, Montenegro’s Minister of Justice, will determine Kwon’s place of extradition.

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