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Terraform Labs’ Do Kwon Charged in Montenegro for Document Forgery

2 mins
Updated by Ali M.
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In Brief

  • Montenegro authorities have charged Terra LUNA founder Do Kwon and Hong Chang-jun.
  • The South Korean defendants are alleged to have forged official documents.
  • Extending their detention will likely complicate extradition efforts by South Korean and American authorities.
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Montenegro authorities have charged former Terraform Labs representatives Do Kwon and Hong Chang-jun, according to a local news report from Pobjeda on April 20.

Terra LUNA founder Kwon and Chang-jun were arrested on March 23 at Montenegro’s capital Podgorica Airport. They were attempting to board a private flight to Dubai.

According to the news report, the Podgorica District Prosecutor’s Office has submitted documents to the Podgorica Court. These are with the purpose of charging the South Korean defendants Do Kwon and Chang-jun with the forgery of official documents.

The prosecutor’s office has also requested an extension of the defendants’ detention period.

Terraform Labs Former CEO Do Kwon
Terraform Labs Former CEO Do Kwon. Source: Reuters/Stevo Vasiljevic

Haris Šaboti of the State Prosecution Office filed the papers requesting the extension. Court spokesperson Maja Kosovid said the public would be informed of case developments following the court’s detention ruling.

Montenegrin authorities detained Kwon and Chang-jun for thirty days following their arrest. If convicted, the pair faces three months to five-year sentences.

The pair allegedly purchased a $2.2 million apartment in Belgrade, Serbia, in Sep. 2022. Around the same time, Kwon denied avoiding an Interpol Red Notice seeking his apprehension. They registered a new company in Serbia under Kwon’s name, later skipping the border to neighboring Montenegro. 

Their arrest in Podgorica came as they tried to board a privately-leased plane to Dubai.

Detention Extension Will Likely Delay Extradition

Extending their detention will likely complicate extradition efforts by South Korean and American authorities. 

U.S. prosecutors have criminally charged Kwon with eight counts of fraud shortly after his arrest in Montenegro, while South Korean authorities claim he violated capital markets law by misleading investors.

They are also investigating payments Kwon made to the South Korean law firm Kim & Chang before the collapse of the TerraUSD stablecoin in May 2022.

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Ali Martinez, a dynamic content strategist, graduated from Boston University with a double major in Marketing and Digital Media Management. Excelling in SEO and brand storytelling, he played a pivotal role at Binance as a Content Manager, harmonizing engaging narratives with strategic marketing goals. Previously, as Senior Managing Editor at FXStreet, he ensured content consistency and optimization, enhancing brand presence. Ali's extensive experience also includes contributing to the crypto...