Failed crypto founder Do Kwon is now facing a stint behind bars, not due to his many alleged crypto crimes, but for his very shady passports. On Monday, Montenegro’s basic court announced it had sentenced Kwon and his compatriot, former Terra chief financial officer Han Chong-joon, to four months in jail. The pair had been arrested earlier this year trying to scamper off to Dubai with forged passports.
However, according to the announcement, the jail time also accounts for the months the two spent in custody, from March 23 until June 15, meaning the former Terraform Labs execs will spend just a little over two months in jail. The pair still have time to appeal, which could drag their jail time out even further. Much of their time in court has been spent arguing about bail. The court initially granted the pair a supervised release in their lawyer’s girlfriend’s apartment for the low, low price of around $437,000. The country’s higher courts overrode that decision and sent the two back to jail while awaiting trial.
South Korean news agency Segye Ilbo reported that Kwon had argued in court that he received the passport “through an agency in Singapore recommended by a friend” and that he got his Belgian passport through a separate agency. Kwon reportedly claimed he didn’t remember the name of the agency, which is always a good sign.
Back when Montenegrin authorities arrested Kwon and Chong-joon, the country said they were found trying to escape the country holding forged Costa Rican and Belgian passports. The founder and CEO of Terraform labs had been on the run for close to a year from international police forces after the collapse of his algorithmically stabilized stablecoin Terra became, well, unstable. This led to a $40 billion run on the crypto market that sank some users’ entire life savings.
Both South Korea and the U.S. previously confirmed they hoped to extradite the ex-Terra CEO on massive allegations that include securities and wire fraud. Korean authorities have charged Kwon with breaking the country’s capital markets law. It remains unclear whether Montenegrin authorities will hand Kwon off to authorities from either country.
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