Do Kwon with prison cell background

Do Kwon faces up to 5 years in Montenegrin jail over fake passport charges

Prosecutors in Montenegro have hit Terraform Labs CEO Do Kwon with criminal charges of possession of fake passports and other travel documents, DL News reported.

According to the report, Kwon and his accomplice Han Chang-joon were arraigned before a Montenegrin Basic Court for holding fake Costa Rican passports. Indictment documents indicate that both Kwon and Han are staring at a term of imprisonment of up to five years if convicted.

Shortly after Kwon’s arrest aboard a leased private jet bound for Japan, authorities disclosed that he will have his day in Montenegro’s courts before ceding to any extradition requests. The court ordered a 30-day detention for the duo on the grounds of being flight risks, with officials of the State Prosecution Office seeking a further extension.

“After the decision on the extension of detention by the court, the public will be informed about all available information regarding this case,” court spokesperson Maja Kosovic said.

The implication of the decision of Montenegrin officials to begin the prosecution of Kwon could see both South Korea and the U.S. wait even longer for their extradition requests to be granted. Both nations have formally applied to the Montenegrin government to extradite Kwon to their jurisdictions to face criminal charges over the sudden de-pegging of the algorithmic stablecoin TerraUSD (UST).

Following the collapse of Terra’s ecosystem, thousands of investors recorded losses exceeding $4 billion, prompting massive enforcement action from authorities worldwide. South Korean investigators went on a confiscation spree, seizing the real estate of former Terraform executives amounting to over $300 million.

However, South Korean officials are yet to lay their hands on a single asset belonging to kingpin Kwon. The investigators have requested the help of digital currency exchange Binance to freeze any digital assets linked to Kwon, but it remains unlikely that the embattled founder had any assets on the platform.

$2 million mansion in the Balkans

As investigators continued to probe into his activities, they struck gold after discovering a $2.2 million luxury property purchased by Kwon in the heart of Belgrade. It was reported that Kwon and Han spent a significant amount of time in the apartment as the manhunt for their capture raged on.

The property has been seized by Serbian investigators, making it the first of Kwon’s assets to be confiscated by law enforcement agents. While hiding in the Balkans, Kwon and his associate floated a new corporate entity with the Serbian Business Registry to offer consultancy services, widely regarded as a ploy to launder illicit funds.

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