Crypto fugitive and Terraform Labs founder Kwon Do-hyeong, also known as Do Kwon, has been sentenced to four months in a Montenegro prison for allegedly forging travel documents.
The suspect was first arrested in March while he was in Montenegro's capital of Podgorica alongside Terraform Labs' former finance officer, Han Chang-joon. The two individuals spent several months hiding in Serbia before their arrest.
Crypto Fugitive Do Kwon Sentenced to Balkan Prison
Officials taking the two men into custody ended a cat-and-mouse chase from South Korean authorities, which requested assistance from Interpol to issue a red notice for the two suspects' arrest across 195 countries.
Authorities discovered that the suspects possessed falsified travel documents, including two Costa Rican passports, two Belgian passports, and two identity cards. They also recovered laptops and several other gadgets from the two men.
The United States and South Korea have been competing to extradite the alleged crypto scammer from Montenegro. As per Quartz, do Kwon was found to have orchestrated the $40 billion downfall of the TerraUSD and Luna tokens.
In a statement, South Korean prosecutor Dan Sunghan, who has been leading the investigation into the suspect, said earlier this month that Do Kwon could be tried in both countries. He added that the suspect could also spend his sentence first in one nation and then followed by the other.
The charges against the suspect in South Korea include breaching capital markets law, and he is facing a 40-year prison sentence. On the other hand, Do Kwon faces fraud charges in the United States, with the Securities and Exchange Commission (SEC) suing the individual for financial crimes and trying to manipulate capital markets.
Regulators also allege that the suspect caused U.S. retail and institutional investors "devastating losses." In February, SEC chair Gary Gensler said that Terraform Labs and its founder failed to provide the public with "full, fair, and truthful disclosure as required for a host of crypto asset securities."
Forged Travel Documents
In a statement, the court that issued the prison sentence to the two individuals said that their sentences include the 85 days they spent in detention. In October last year, Do Kwon said that he did not believe the charges against him were legitimate, claiming they were "politically motivated," according to CBS News.
While authorities were hunting Do Kwon, he repeatedly claimed he was not "on the run," arguing that he did not reveal his whereabouts over worries about his security.
On Monday, the court in Podgorica said that the sentence would be written and delivered to Do Kwon and Han within the next 30 days. The two men can also appeal the decision within eight days of receiving the letter.
A South Korean court issued arrest warrants for Do Kwon and five other individuals that officials believed were connected to the case last year. Prosecutors added that Terraform Labs, registered in Singapore, violated capital market rules. The situation comes as Montenegro does not have extradition treaties with the United States or South Korea, said BBC.
