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.
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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