Terra’s CEO and Former CFO Sentenced in Passport Forgery Case, Extradition Proceedings Continue

Do Kwon, the creator of the crypto firm Terraform Labs that collapsed in 2022, is facing charges of fraud brought forth by U.S. prosecutors. The public release of an eight-count indictment against Kwon took place in the U.S. District Court located in Manhattan, subsequent to his arrest in Montenegro earlier in March.

In more recent news, it has been reported that both Do Kwon, who serves as the CEO of Terraform, and the former Chief Financial Officer Han Chang-Joon has been found guilty in a case related to passport forgery. Consequently, they have been sentenced to serve a four-month jail term.

Do Kwon Sentenced in Passport Forgery Case

In a court session held at the Basic Court on June 19, Judge Ivana Becic of Montenegro ruled that Do Kwon and Han Chang-joon, the defendants in the case, had made use of counterfeit Costa Rican passports in an attempt to board a flight bound for Dubai back in March. The judge sentenced both individuals to a four-month imprisonment term, which takes into account the duration they have already spent in custody from March 23 to June 15.

During her ruling, the judge briefly explained the factors that led to a comparatively lower sentence. Additionally, she stated that any party dissatisfied with the decision has the right to appeal within eight days of the receipt of the written verdict.

Extradition Custody Ordered for Do Kwon and Han Chang-Joon

On June 15, the Montenegro High Court granted Do Kwon and Han Chang-joon’s request for bail. However, due to a request from South Korea, the court ordered extradition custody for a period of up to six months. Consequently, both individuals will remain in custody pending further proceedings.

During the subsequent hearing on June 16, Do Kwon and Han Chang-Joon asserted that they were unaware of the counterfeit nature of the passports obtained through an economic citizenship program, as they had used these Costa Rican and Belgian passports for their travels worldwide. Additionally, Do Kwon disclose how he acquired passports while in Singapore?

Furthermore, Do Kwon provided testimony to both the Special State Prosecutor’s Office (SDT) and his defense attorneys, stating that he had no financial transactions or meetings with former finance minister Milojko Spajic.

Will Do Kwon And Han Chang-Joon Be Extradited To South Korea? 

Goran Rodić, the lawyer representing Do Kwon and Han Chang-joon, have stated their intention to file a complaint against the detention. They will proceed with this course of action once they receive the written verdict, which is expected to be issued within 30 days.

Rodić further stated that “It is still too early to talk about whether the two will be extradited.”

In the meantime, the Montenegro High Court is actively pursuing the extradition of both South Korean citizens in order to expedite the ongoing extradition proceedings.