Do Kwon, the founder of Terraform Labs, has been sentenced to four months in jail by a court in Montenegro after being found guilty of document forgery. The Basic Court in the capital city of Podgorica delivered the verdict, stating that the time spent in detention will be included in the sentence.
Kwon, a South Korean national, was arrested in March in Montenegro for allegedly possessing falsified documents, along with another Terra executive, Han Chang-Joon. Despite local courts approving bail last week on their second attempt, the two have remained in custody since their arrest.
The court also ordered the confiscation of two Costa Rican passports, two Belgian passports, and two identity cards belonging to Kwon and Han.
Prior to his arrest in Montenegro, Kwon had asserted that he was “not on the run,” even as South Korean authorities initiated an international search for him, including seeking a red notice from Interpol. Both South Korean and U.S. authorities have requested Kwon’s extradition to face criminal charges related to the collapse of Terra, a multi-billion dollar cryptocurrency enterprise, in May 2022.
The High Court in Podgorica confirmed that Kwon will remain in “extradition custody” for six months while South Korea’s extradition request is under consideration.
