Do Kwon, the co-founder of Terraform Labs, and his aide have been sentenced to four months in prison by a Montenegro court on charges of using forged passports. Kwon and his chief financial officer were arrested in March at Podgorica Airport as they attempted to travel to Dubai. South Korea and the US are seeking Kwon’s extradition. The co-founder and his aide had been on the run since fleeing South Korea while under investigation after a Terraform Labs’ cryptocurrency crash last year. Interpol has also issued a red notice.
A Montenegro court has sentenced Do Kwon, the co-founder of Terraform Labs, and one of his aides to four months in prison on charges of using fake passports.
Kwon, 32, who was behind cryptocurrencies that suffered a multi-billion dollar crash last year, and his chief financial officer, identified only by his surname Han, were arrested at Podgorica Airport on March 23 after attempting to travel to Dubai with forged passports, reports Yonhap News Agency.
The Basic Court in Podgorica announced on its website, it handed four-month prison terms to both. They denied the charges during previous hearings.
Earlier this month, the court granted bail to both on the condition that they each pay 400,000 euros ($428,241) in bail money and are placed in confinement under police surveillance.
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View Details »South Korea and the US are seeking his extradition.
The duo had been on the run after fleeing South Korea while under a probe in connection with the crash of Terraform Labs’ TerraUSD and Luna coins in May last year, which wiped out nearly 50 trillion won ($38 billion) in market value.
South Korean prosecutors have since sought an arrest warrant for Kwon over allegations that included providing false information to investors and violation of the capital market law.
Interpol also issued a red notice, used for the highest level of wanted suspects and criminals. Kwon’s passport has since been invalidated.
Kwon is also wanted by the US, where he was charged with fraud by federal prosecutors in New York.
It is unclear whether Kwon would be sent to South Korea, as the country requested his extradition first.
In March, the Montenegrin justice minister said which country Kwon will be extradited to will be determined on the basis of the location and the time of his criminal offence and other factors.
TerraUSD was designed as a stablecoin, which was pegged to stable assets, like the US dollar. But holders of TerraUSD and Luna lost more than an estimated $40 billion in market value after the stablecoin plunged far below its $1 peg last May.