The Montenegrin court sentenced on Monday Do Kwon, the South Korean founder of cryptocurrency Terra, to four months in prison for falsifying documents after his arrest in possession of false passports.
The founder of the company Terraform Labs he was arrested in March at an airport in this small Balkan country.
South Korea and the United States also request the extradition of the businessman, whose full name is Kwon Do-hyung, for his role in the fraud linked to the collapse of his company in 2022, which caused investors to lose some 40,000 million dollars (37,000 million euros) and rocked the cryptocurrency markets.
In the case of the false documents, a court found that Do Kwon and his CFO, arrested at the same time, were “guilty of using false passports” from Costa Rica, according to a court statement.
The two men also had Belgian passports in their luggage under different names, according to the same source. Do Kwon’s lawyer said he will not appeal the conviction.
A few days ago, in the extradition case, the court extended his preventive detention to six months.
Do Kwon had fled South Korea for Singapore after the collapse of Terraform Labs in May 2022. In September, South Korean prosecutors asked Interpol to redlist him and revoked his passport.
Cryptocurrencies have been in the crosshairs of the authorities since episodes such as the bankruptcy of FTX, one of its most important exchange platforms, and of the American companies Silvergate and Signature.
Source: Ambito
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