A court in Montenegro found Do Kwon guilty of document forgery and sentenced him to prison. Quan will remain in custody pending the country’s response to the extradition request.
Do Kwon, CEO and co-founder of Terraform Labs, was found guilty of document forgery and sentenced to four months in prison. Quan was convicted and sentenced by a basic court in Podgorica, the capital of Montenegro.
Authorities in Montenegro arrested Do Kwon back in March for carrying a fake document. Law enforcement arrested Kwon and Han Chang-joon, another executive of Terraform Labs. Both have been in custody since their arrest.
Although the Podgorica High Court approved bail for the officers, a local news outlet RFE informed of that Kwon would remain in custody for six months. During this period, local courts will deliberate on whether or not to allow the extradition request from South Korea to take effect. Podgorica High Court Confirmed news reports to CoinDesk.
Like South Korea, the US has also requested extradition. Both countries want Kwon to answer for the collapse of Terraform Labs, which includes the LUNA and UST cryptocurrencies.
Do Kwon’s pre-guilty bail conditions rejected
Last month, a Basic Court in Podgorica agreed to a bail motion initiated by Kwon’s lawyers to release the CEO and Chang-joon. Lawyers proposed a supervised bail, in which each man would pay 400,000 euros (or $435,000) as the trial progressed. Following the approval, the plaintiffs quickly appealed the decision to a higher court in Podgorica, which ultimately ruled against the approval.
Notably, the court’s ruling specified that the four-month sentence would also include the time the authorities have already spent in custody. The ruling also directed authorities to seize two Belgian passports, two Costa Rican passports and two ID cards owned by the two officials.
In September last year, South Korea launched a search for Do Kwon and even asked Interpol to issue a “red notice” for Kwon. A Red Notice is a call to Interpol to immediately take a person into custody for surrender, extradition, or other action. However, Do Kwon announced on Twitter Thread He was not guilty of anything and he was not on the run. He also said that there was no need for anyone to know his exact GPS coordinates, adding that he would defend himself against any allegations.
“I’m not ‘on the run’ or anything like that – to any government agency that has shown interest in communicating, we are in full cooperation and we have nothing to hide. We’re ready to defend ourselves in multiple jurisdictions.” We’re in the process – we’ve held ourselves to an extremely high standard of integrity, and look forward to clarifying the truth over the next few months.
Last May, South Korea’s National Tax Agency found Do Kwon and Terraform Labs guilty of tax evasion and fined him $78 million, According to the agency, Terraform and Do Kwon violated the South Korean Corporate Tax Act, which requires foreign companies to pay taxes if they are domestically managed, regardless of country of registration. The agency also alleges that prior to the Terraform crash, Kwon tried to liquidate the company and move out of South Korea.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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