Do Kwon, the CEO and co-founder of Terraform Labs, has been found guilty of forging documents by a Montenegro court. The court announced its decision today, sentencing Kwon to four months in prison. Furthermore, the court ordered the confiscation of Kwon’s two Costa Rican passports, two Belgian passports, and two identity cards.
During the trial, Kwon claimed that he was unaware of the alleged falsification of his passport and travel documents. He stated that he obtained the passports through third-party agencies based on a recommendation from a friend. He stated that he had been using the passport for years without suspecting its authenticity.
Kwon had previously entered a not-guilty plea after being detained for attempting to leave Montenegro with forged documents on an international warrant. In March 2023, Kwon and Han Chong-joon, the former CFO of Terraform Labs, were apprehended while attempting to board a private flight from Podgorica to Dubai.
In addition to the document forgery charges, Kwon is also facing allegations from the South Korean government for manipulating token pricing during his tenure as Terraform’s CEO. It is alleged that he instructed an employee to manipulate the price of LUNA, the cryptocurrency developed by Terraform Labs.
Do Kwon’s Terraform Labs was also the parent company behind the now-defunct stablecoin TerraUSD. The collapse of these projects in May 2022 resulted in significant losses in the cryptocurrency market, amounting to billions of dollars.
Both South Korea and the U.S. have requested Kwon’s extradition due to the significant impact of the Terra collapse on their citizens. Kwon is expected to remain in extradition custody for a maximum of six months while the local court deliberates on the extradition request.
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