Montenegro Court finds Terraform Labs founder Do Kwon guilty of passport forgery: Sentence him to four months in jail 

YEREVAN (CoinChapter.com) — On June 19, a Montenegro district court sentenced Kwon Do-hyeong (Do Kwon), the chief executive officer of Terraform Labs, to four months imprisonment. The court found Kwon and his colleague, Terraform’s former Chief Financial Officer, Han Chang-joon, guilty of using counterfeit travel documents. The duo allegedly faked their passports. 

The court imposed security and travel measures against the South Korean duo. By the same order, it also confiscates two Costa Rican passports and two Belgian passports from Kwon. Moreover, it seized two identity cards belonging to him and his friend Han Chang-joon.

Earlier this month, a court in Podgorica ruled to allow Kwon and Han to be released on a €400,000 (around $436,750) bail for each. However, a higher court later overturned this ruling and ordered remain incarcerated for an additional six months. Judges were considering an extradition request from South Korean prosecutors. 

Kwon was arrested in March on suspicion of using fake passports while trying to fly out of Podgorica airport. He was allegedly attempting to flee for Dubai on a private jet. 

Amid speculations over his identity, South Korea’s police confirmed that the person arrested was indeed Kwon. The Seoul Southern District Prosecutors’ Office was quick to seek the extradition of the Terraform founder.

South Korean and US prosecutors have charged Kwon with defrauding investors in connection with the $60 billion collapse of the Terra blockchain ecosystem in May of 2022. He also faces a $75 million lawsuit in Singapore. 

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Do Kwon claims a Chinese firm issued the “Golden Passports”

Unsurprisingly, Do-Kwon has denied all charges against him. According to him, he participated in a certain “golden passport scheme” from where he received the alleged fake passport. 

The disgraced crypto mogul claimed that the Costa Rican passport came from a Chinese company. However, he failed to recall its name. 

Kwon was allegedly led to believe that there is a special scheme that allows successful, high-valued individuals to receive citizenship in a few countries. So he purchased a ticket and participated in the scheme, from where he received his fake travel documents.

However, surprisingly, his fake Belgian passport came from a different agency which his “highly-respected friends” recommended.