Prosecution Indicts Han Chang-jun, Terraform Labs CFO, on Terra and Luna Case

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Han Chang-jun, Chief Financial Officer (CFO) of Terraform Labs, who fled with Kwon Do-hyung, CEO of Terraform Labs and a key figure in the cryptocurrency 'Terra·Luna' crash incident, and was repatriated to South Korea, has been indicted while in custody.

The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Ha Dong-woo) announced on the 21st that Han was indicted in custody on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), violation of the Capital Markets Act (fraudulent unfair trading), and violation of the Electronic Financial Transactions Act.

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. When combined with the illicit gains obtained by accomplices, the total amounts to approximately 462.9 billion KRW.

Terra promoted Terra coin as a 'stable coin' (value-stabilizing coin) whose price is fixed according to an algorithm and claimed that 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 investors worldwide 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 transaction records of ChaiPay customers by recording them on the Terra blockchain without consent.

He is further accused of causing damage by falsely representing that seigniorage profits were generated from issuing Terra coins and transferring 14.1 billion KRW of Terraform Labs’ company funds to a company he represents without compensation.

Meanwhile, the extradition approval for Kwon, who is detained in Montenegro, has been overturned and remanded twice due to procedural defects, delaying a final conclusion.

A prosecutor stated, "We will do our best to ensure that Kwon is promptly repatriated to South Korea."

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