TFL founder gets 4 months in prison in Montenegro
The time spent in custody will be counted against his sentence
19.06.2023 - 15:50
303
3 min
0
What’s new? A court in Montenegro has found the founder of Terraform Labs (TFL) Do Kwon guilty of using a fake Costa Rican passport while trying to leave the country in March 2023. The entrepreneur was sentenced to four months in prison, according to the decision of the court of first instance in Podgorica. The TFL founder himself did not plead guilty, saying that he received the passport from a third party and, therefore, was not aware of the forgery.
What else is known? The court found Kwon’s assistant, Han Chang-joon, guilty of a similar crime and sentenced him to four months in prison. The time spent in custody (from March 23 to June 15) will be counted toward the sentence. The court will also confiscate two Costa Rican passports, two Belgian passports, and two identification cards of Kwon and Chang-joon. The convicts have eight days to appeal the court's decision.
What else is known about the case? On March 23, Kwon and Chang-joon were detained at Podgorica airport with fake passports while trying to fly to Dubai. Kwon was only charged with document forgery in Montenegro, while several other countries are investigating the May 2022 crash of TFL’s Terra blockchain ecosystem, which caused tens of billions of dollars in losses for investors. For example, Interpol and South Korea, of which Kwon is a citizen, issued arrest warrants in connection with the case. The US Attorney’s Office is also conducting its own investigation. Collective lawsuits against TFL and Kwon have been filed by investors from Korea, the United States, and Singapore.
The authorities of the two countries, the United States and South Korea have expressed a desire to extradite Kwon to their territory for judicial proceedings. The issue will be resolved after he serves his sentence in Montenegro, local officials reported.
Leader of the leading party in Montenegro accused of having ties with Do Kwon
The alleged connection is reported in a handwritten document by the founder of TFL
In June, the South Korean prosecutor’s office demanded that Kwon’s assets worth millions of dollars be frozen. According to law enforcement officials, the funds were transferred to the bank from a crypto wallet of LFG, a company owned by the TFL founder.
Useful material?
Business
Earlier, Brad Garlinghouse claimed apparent harassment of the company by the US authorities
May 14, 2024
Crypto regulations
According to Brad Garlinghouse, the magnitude of the impact of such harassment on the crypto ecosystem is beyond prediction
May 13, 2024
Crypto regulations
The condition is part of the exchange’s agreement with authorities to plead guilty to regulatory violations
May 13, 2024
Market
The USDT issuer responded by saying that the report lacked sufficient data to support such claims
May 10, 2024
Incidents
The breach was reported to Binance by the head of its monitoring department, who was later fired
May 9, 2024
Trends
In April, the project’s launch on the crypto exchange was postponed twice
May 9, 2024