Do Kwon: Montenegro imposes prison sentence on Terra founders
A Montenegrin court in the capital Podgorica has sentenced cryptocurrency founder Do Kwon to four months in prison. The South Korean was found guilty of document forgery when he tried to leave Montenegro with a fake Costa Rican passport in March. Both Do Kwon and his business partner from South Korea were arrested while trying to leave the country. The verdict in the first instance is not yet final, reports the news portal ” cdm.com “.
Do Kwon: Montenegro imposes prison sentence on Terra founders
Do Kwon developed the cryptocurrencies Terra and Luna in Singapore. Last May, the Terra Luna system crashed spectacularly, resulting in significant losses and leaving investors with around $40 billion in damage. Do Kwon then disappeared without a trace. Last September, Interpol issued an international arrest warrant for him. Both South Korean and US authorities are looking for him.
Last week, a court in Podgorica handed Do Kwon and his business partner a six-month extradition detention regardless of the document forgery case in order to consider South Korea’s extradition request. Do Kwon’s conviction represents another blow to the once-respected crypto founder, whose reputation has suffered badly since the collapse of the Terra Luna system. The court in Montenegro ruled that he had attempted to leave the country using forged identification documents, suggesting an escape.
Investors who backed the Terra and Luna cryptocurrencies were hit hard by the system collapse. Many of them lost significant amounts of money while Do Kwon disappeared without a trace. Losses were estimated at around $40 billion. This had caused a wave of anger and frustration among affected investors.
How does it go from here?
The international manhunt for Do Kwon finally led to his arrest in Montenegro. Since then, authorities have been working to clarify the legal ramifications for his actions. The recent verdict by the court in Podgorica over document forgery brings Do Kwon another setback. It also ensures that he has to answer for his offenses.
It remains to be seen how detention pending extradition and the ongoing investigation into Do Kwon will continue. Both South Korea and the US are pushing for his extradition. Precisely to hold him accountable for investors’ losses. And potentially bringing further criminal charges against him. Actually, about two weeks ago, reports had made the rounds that Kwon should be released. So now the turnaround.
Do Kwon’s conviction marks a significant turning point in his life and in the cryptocurrency industry in general. The events surrounding the collapse of the Terra Luna system and the subsequent legal battles demonstrate the challenges and risks that can be associated with investing in crypto. While the technology and potential behind cryptocurrencies continue to fascinate, the legal aspects and security for investors are becoming important issues that need to continue to be discussed in the industry.
