A court in Montenegro sentenced cryptocurrency entrepreneur Do Kwon and his associate to four months in prison.
According to the local daily Vijesti, Do Kwon is accused in the U.S. of committing a multibillion-dollar fraud and was sentenced for using counterfeit passports.
South Korean-born Kwon served as the former CEO of Terraform Labs, the South Korea-based corporation that created the stablecoin TerraUSD, which crashed in May 2022 and upended the cryptocurrency markets.
He and Han Chang-joon, the former financial officer of Terraform Labs, were arrested in late March as they attempted to board a flight to Dubai at the airport in Podgorica, the capital of Montenegro, and were later charged with faking official documents.
After they were taken into custody, the police reported that they had discovered laptop computers, various electronic gadgets, a second set of Belgian passports, and altered Costa Rican passports in their luggage.
The judgement came following a court proceeding last week where Do Kwon withdrew his demand for the legitimacy of the Costa Rican passports to be checked after Interpol determined they were fraudulent.
Authorities in South Korea and the United States are requesting Kwon and Han’s extradition.
Kwon was charged with conspiracy, securities fraud, wire fraud, and commodities fraud in an eight-count indictment that was made public by the U.S. District Court in Manhattan after his arrest.
The pair’s bail of 800,000 euros was revoked by the higher court in late May after they failed to provide a strong guarantee that they would not flee after being freed from custody.