Do Kwon, the founder of Terraform Labs, was found guilty of forging documents and was sentenced to four months in prison by a court in Montenegro. The sentence, which took into account the amount of time previously spent in custody, was delivered on Monday by the Basic Court in Podgorica, the nation’s capital.
Kwon, a citizen of South Korea, and Han Chang-Joon, another Terra executive, were first detained in March in Montenegro on suspicion of carrying forged passports. Both people have remained in detention since their arrest, despite local courts releasing them on bond last week after their second unsuccessful attempt.
The court also mandated the seizure of Kwon and Han’s two identification cards, two passports from Belgium, and two passports from Costa Rica as part of the judgment.
Kwon had denied being on the run up to the time of his arrest in Montenegro, even as South Korean police launched a global manhunt for him and asked Interpol for a red alert. In order to prosecute him on criminal accusations related to the demise of Terra, a multibillion dollar cryptocurrency company, in May 2022, both South Korean and American authorities have asked for his extradition.
Kwon will stay in “extradition custody” for six months while South Korea’s extradition request is being examined, the High Court in Podgorica confirmed to CoinDesk.
Do Kwon’s punishment clarifies the accusations made against him and represents a major advancement in the judicial processes surrounding Terra’s demise. The case will continue to develop as authorities assess the extradition petitions, underscoring the global cooperation and intricate legal issues involved in situations of this kind.