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.
Court Sentences Do Kwon to Jail
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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This article was written by Solomon Oladipupo at www.financemagnates.com.
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