In a recent development, Do Kwon, the disgraced founder of Terra (LUNA), faced legal consequences as a Montenegro court handed him a four-month prison sentence for his involvement in an attempted international travel using a forged passport. The incident took place when Kwon was apprehended in late March while attempting to board a flight to the United Arab Emirates (UAE) using a passport from Costa Rica, which authorities confirmed to be counterfeit.
This verdict comes after Kwon spent approximately three months in custody, and the time served will be counted towards his four-month sentence, as announced by the court in Podgorica, the capital city of Montenegro. During the court proceedings, Kwon made an argument asserting that he obtained the Costa Rican passport through a legitimate agency and had successfully used it for international travel on various occasions, as reported by the Korean news outlet Segye Ilbo.
Kwon stated, “I completed all the necessary paperwork and obtained a Costa Rican passport through an agency in Singapore, which was recommended by a friend. I also acquired a Belgian passport through another agency. When I applied for a Granada passport through the same agency, it was rejected. However, there was no reason to doubt the legitimacy of the Costa Rican passport, as the application was accepted.”
In response to the judge’s inquiry about the agency’s name, Kwon claimed he couldn’t recall the precise details, mentioning that the agency’s name was in Chinese characters.
Although the Montenegro court’s ruling imposed a relatively short prison term, it is unlikely to mark the end of Kwon’s legal predicaments. Authorities in the United States and South Korea are seeking his extradition, as he faces multiple charges related to the $40 billion crash of the Terra ecosystem and its stablecoin, TerraUSD (UST).
In a tweet shared in February, Kwon vehemently denied any involvement in embezzlement or secret financial transactions, stating, “I have not stolen any money and have never engaged in ‘secret cashouts.'” He also expressed his willingness to address specific allegations. However, it remains unclear if he has publicly addressed these allegations in any substantial manner.
According to Dan Sunghan, the director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service, Kwon could potentially face a prison term exceeding four decades, highlighting the severity of the charges against him.
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