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, the former Chief Financial Officer at the Singapore-based blockchain company, was also found guilty of the same crimes by the Basic Court in Podgorica, Bloomberg reported on Monday. Han likewise 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 via a private jet. The court said fake Costa Rican and Belgian passports as well as falsified identity cards were confiscated from the executives.
The sentencing came weeks after the court set bail of €400,000 for each offender Kwon and Han. The bail granted in May was later voided by an upper court following an appeal by the prosecutor as 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 could appeal the verdict at a higher court.
Kwon last week informed the court that he obtained the travel documents from an agency in Singapore recommended by his friend. 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, the US securities regulator charged Kwon with securities fraud. Later, Federal prosecutors followed this up with fraud charges over the failure of the cryptocurrency projects. On top of that, South Korea 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 ‘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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