Do Kwon Charged in Montenegro For Using Forged Documents 

• Singapore, South Korea, and the US submitted a request to Montenegro authorities for Do Kwon’s extradition. 
• Authorities of Montenegro charged the Terra founder for using forged documents.   

Do Kwon, the detained co-founder of Terraforms Labs, is reportedly charged by prosecutors in Montenegro for using forged passports and other identification documents. According to local media outlets, the indictment will likely complicate efforts to extradite him to the US and South Korea, where he faces multiple charges. 

Montenegro police arrested Kwon and Han Chang-Joon both on March 23, 2023, when they tried to flee from the nation to some new place. Some local officials of Montenegro said both victims used Costa Rica’s passports when they attempted to fly to Dubai. 

Montenegrin Authorities informed media outlets that Singapore also submitted an official request for the extradition of Do Kwon. It is important to note that Terraform was entirely banned in Singapore, then also it submitted its request.

Other than Singapore, South Korea and the United States also submitted their request for the extradition of the Terraform co-founder. The hide-and-seek game ended after six months at Podgorica(Montenegro) airport; the police officials detained him.

Earlier on April 15, 2023, TheCoinRepublic reported that the co-founder of failed Terraform Labs is accused of sending 9 Billion won ($7 billion) to South Korean prosecutors. According to KBS News, the amount deposited in Kim & Chang’s account was from Terraform’s account.

The media source reveals that the prosecutor of Kim & Chang visited Montenegro to meet Kwon after his arrest by the police administration. Reports indicate that the prosecutor also talked with the former Chief Financial Officer of Terra Labs. 

As the investigation progressed, prosecutors confirmed that Do Kwon and his acquaintances have 414.5 billion South Korean won (equivalent to about 314.2 million USD.) Of this, at least 91.4 billion won, or 69 million USD, belongs to Kwon alone. 

Kwon reportedly took most of the stolen funds and converted them into Bitcoin (BTC). He put the funds through crypto exchanges in countries other than South Korea. Both conditions made it quite challenging for authorities to recover these assets. 

Terra (LUNA) network collapsed in May 2022 after its native algorithmic stablecoin Terra USD (UST) lost its peg from US dollars. The collapse of the Terra network was a significant hit for the broader cryptocurrency industry. At the time of its failure, the stablecoin had a huge market capitalization of 40 billion USD. 

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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