The Montenegro High Court has denied Terraform Labs
Founder Do Kwon’s appeal, upholding his four-month prison sentence for falsifying
documents. This decision intensifies Kwon’s plight as he faces potential
extradition following the completion of his sentence.
The decision by the court dealt a blow to Do Kwon’s earlier attempt to overturn the prison sentence initially issued by a lower
court in June. Alongside fellow Terraform Labs’ executive Han Chang-Joon, Kwon
faced charges of falsifying documents.
This case emerged nearly a year after the collapse
of Terraform Labs. Both individuals have remained in custody since their arrest
in March. Once his term in the Balkan nation concludes, Kwon faces the
possibility of being handed over to authorities in the US or South Korea, Coindesk
reported.
The Basic Court of Montenegro’s capital, Podgorica,
deemed the four-month prison sentence an “adequate” punishment for
the crime. Additionally, the court highlighted the necessity of the imposed
security measure, confiscating passports and identity cards, to prevent
potential future criminal acts by the perpetrators.
Montenegro’s Basic Court in Podgorica issued the
four-month jail sentence to Do Kwon and former CFO Han Chong-Joon, marking a
significant chapter in their legal battle.
The duo was apprehended in March in Montenegro while
attempting to travel to Dubai via a private jet. The court confiscated fake
Costa Rican and Belgian passports along with falsified identity cards from both
executives.
Initially granted bail of €400,000 each, this
reprieve was later annulled as an upper court deemed the executives’ property
evaluation incomplete following a prosecutor’s appeal. The time spent in
detention by the Terraform Labs executives will reportedly be factored into their
sentences.
Criminal Charges and the Fallout from Terra’s
Collapse
In March, federal prosecutors in New York brought criminal charges against Kwon, unveiling eight counts related to the ill-fated
stablecoin project. These charges encompass commodities fraud, securities fraud,
wire fraud, and conspiracy to defraud and manipulate markets.
The arrest of Kwon marked a pivotal moment in the
aftermath of Terra’s catastrophic collapse, erasing a staggering $40 billion
from the ecosystem. Terraform Labs, under Kwon’s leadership, issued an
algorithmic stablecoin pegged to the USD before collapsing in May last year.
The Montenegro High Court has denied Terraform Labs
Founder Do Kwon’s appeal,…
