The post Do Kwon Sentenced to Four Months in Prison by Montenegro High Court appeared first on Coinpedia Fintech News
Do Kwon, the founder of Terraform Labs, has been sentenced to four months in prison by a Montenegrin court for falsifying documents. The decision follows an appeal by Kwon and fellow executive Han Chang-Joon, who were arrested in March 2022.
The court’s statement described the sentence as “adequate” punishment for the crime committed. Kwon and Han Chang-Joon have been in custody since their arrest and will serve their sentences before facing extradition to either South Korea or the U.S. The collapse of Terraform Labs’ crypto empire in May 2022 resulted in billions of dollars in losses for investors.
Arrest and Charges: Do Kwon and Han Chang-Joon
Kwon and Han were arrested in Montenegro in March 2022. They were accused of falsifying documents related to the issuance of UST stablecoins. The documents allegedly showed that the UST stablecoin was backed by reserves, while in reality, it was not. Kwon and Han have remained in custody since their arrest.
Montenegro Court’s Decision: Sentence and Explanation
The Montenegro court’s statement described the four-month prison sentence as “adequate” punishment for the crime committed. The court also stated that the confiscation of Kwon and Han’s passports and identity cards was necessary to prevent them from committing further criminal acts. The court’s decision was upheld by the Montenegro High Court in a recent statement.