• Terraform Labs founder Do Kwon has been sentenced to four months imprisonment by a Montenegro court.
• His colleague Han Chang-joon received the same sentence for their involvement in using counterfeit travel documents and possessing fake passports.
• Kwon is also wanted by US and South Korean authorities due to his alleged involvement in the collapse of the Terra blockchain ecosystem in May of 2022.

Terraform Labs Founder Do Kwon Sentenced to Four Months Imprisonment

A Montenegro district court on June 19th ruled that Terraform Labs founder Do Kwon will serve a four month prison sentence for forging travel documents and possessing fake passports. His colleague, Terraform’s former Chief Financial Officer, Han Chang-joon, received the same sentence. The court imposed security and travel measures against the South Korean duo and confiscated two Costa Rican passports and two Belgian passports from Kwon as well as two identity cards belonging to him and his friend Han Chang-joon.

Kwon Arrested on Suspicion of Using Fake Passports

Kwon was arrested earlier this month at Podgorica airport while attempting to flee for Dubai with a private jet under suspicion of using fake passports. After speculation over his identity, South Korea’s police confirmed that the person arrested was indeed Kwon. Seoul Southern District Prosecutors’ Office sought an extradition of the Terraform founder from Montenegro shortly after his arrest.

Charges Against Kwon Include Defrauding Investors

US and South Korean prosecutors have charged Do-Kwan with defrauding investors in connection with the $60 billion collapse of the Terra blockchain ecosystem in May 2022. He also faces a $75 million lawsuit in Singapore over these allegations. Despite denying all charges against him, claiming he had received “Golden Passports” from a Chinese firm, he remains guilty according to Montenegrin law enforcement officials.

Bail Request Denied

The court initially agreed to allow release on bail for each of them worth €400,000 (around $436,750). However, upon appeal from higher courts they were ordered remain incarcerated for an additional six months pending consideration of an extradition request by South Korean prosecutors received during their trial period .

Conclusion

Do-Kwan’s sentence serves as an example to other crypto moguls who may be thinking about fleeing criminal prosecution or engaging in illegal activities related to cryptocurrencies or other financial instruments worldwide.