A court in Montenegro
has sentenced Do Kwon, the Co-Founder of Terraform Labs, to four months in jail for
possessing forged passports and travel documents. Han Chong-Joon, former Chief
Financial Officer at the Singapore-based blockchain company, was also found
guilty of the same crime by the Basic Court in Podgorica, Bloomberg reported on
Monday. Han also received the same sentence.
Kwon and
Han were arrested in March in Montenegro while they were
attempting to travel to Dubai through a private jet. The court said Costan
Rican and Belgian passports and identity cards belonging to the executives were
confiscated.
The sentencing
came weeks after the court granted a €400,000 bail each to Kwon and Han. An initial
bail granted in May was voided by an upper court following an appeal by the
prosecutor that the executive’s property had not been properly assessed.
According
to Bloomberg, the time the Terraform Labs executives had spent in detention will be
factored into the sentence. The court also said they had the option of
appealing the verdict in a higher court.
Kwon last week
told the court that he obtained the travel documents from an agency in
Singapore recommended by his friend. The Terraform Labs CEO denied knowing that the
documents were forged.
Do Kwon
Faces Extradition
As the CEO
of TerraLabs, Kwon helped in creating the algorithmic stablecoin TerraUSD and the native
cryptocurrency of the Terra blockchain, LUNA. However,
the digital
assets collapsed
in May last year, wiping out over $40 billion from the crypto
market.
In
February, US securities regulator charged Kwon with securities fraud, with
federal prosecutors following this up with fraud charges, both over the failure of the cryptocurrency projects. South Korea also issued an arrest
warrant against
the Terraform Labs Founder last year.
Despite
being granted bail last week, the Podgorica High Court confirmed to the media
that it is keeping Kwon in
‘extradition custody’ for six months to consider an extradition request by
South Korea. The United States also asked for the former CEO to be extradited.
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A court in Montenegro
has sentenced Do Kwon, the Co-Founder of Terraform Labs, to four months in…
