The co-founder and former CEO of Terraform Labs, Do Kwon, has been sentenced to prison. The high-profile crypto entrepreneur received a four-month sentence from a Montenegrin court for attempting to travel on a falsified passport. He is still wanted by authorities in the United States and South Korea for fraud.
This marks a significant event in the continuing saga of Kwon, whose actions have made headlines and ruffled feathers in the international cryptocurrency community.
Do Kwon to Serve Four Months in Jail
The Basic Court in Podgorica found Do Kwon and his former associate, Han Chang-joon, who served as Terraform Labs’s Chief Financial Officer, guilty of the same offense. They each received a four-month prison sentence, incorporating credit for time already served.
It is worth noting that they have the right to challenge this verdict.
In March, Kwon and Han, while attempting to board a private jet to Dubai from Montenegro, faced apprehension that led to the discovery of the fraudulent passports. Montenegrin police discovered the men possessing multiple passports, including bogus Belgium and Costa Rican documents. This flagrant attempt to flout international law was critical to their incarceration.
This legal debacle stems from the catastrophic collapse of two digital tokens, Terra LUNA and TerraUSD, that Kwon had a hand in creating. Their failure wiped out an estimated $40 billion in market value.
Consequently, authorities in both the US and South Korea have indicted Kwon with fraud charges concerning this event.
Both nations are presently pursuing Kwon’s extradition from Montenegro, contingent on completing his local criminal proceedings.
Despite the charges, Kwon and Han maintain their innocence. Kwon stated that he believed the passports were genuine, having obtained them through an agency in Singapore.
While the crypto spotlight focuses on Do Kwon’s arrest, it is a stark reminder of the fine line between innovation and transgression in the crypto market.
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