Do Kwon sentenced to four months in prison for using a fake passport.

Terraform Labs founder Do Kwon went into hiding last May after the stablecoin UST collapsed, causing significant losses to cryptocurrency investors worldwide. In March of this year, Do Kwon was arrested while attempting to leave Montenegro, using a forged Costa Rican passport and having fake travel documents from South Korea and Belgium confiscated during the search.

According to an announcement on the website of the Montenegrin court, Do Kwon has been sentenced to four months in prison for using a fake passport.

Do Kwon in Contact with Montenegro Officials

According to previous reports, Do Kwon is accused of donating to the local political party Europe Now, founded by cryptocurrency-friendly politician Milojko Spajić. The Montenegrin government claims that Do Kwon has connections to Spajić, citing a letter sent by Do Kwon from detention to the outgoing Prime Minister Dritan Abazovic, in which he refers to himself and Spajić as business partners.

Just last week, Europe Now secured about a quarter of the seats in the Montenegrin parliament. The party is now seeking to form a government coalition with other political parties, and as the leader of Europe Now, Spajić has the opportunity to become the Prime Minister of Montenegro.

According to a report by Radio Free Europe/Radio Liberty's Radio Slobodna Evropa, Montenegro held a meeting of the National Security Council, which announced that Do Kwon and Spajić met in Belgrade in December 2022. They have known each other for five years, and evidence of funding was found on Do Kwon's laptop.

Lengthy Trial and Extradition Process Ahead

Although initially granted release on a €400,000 bail, the decision was overturned after the prosecution appealed.

During this time, the Montenegrin court will also decide whether to extradite Do Kwon to South Korea, where he is wanted on charges of allegedly defrauding $40 billion through cryptocurrency scams. Apart from South Korea, the United States has also requested his extradition.

According to previous reports, Montenegro's Minister of Justice Marko Kovac stated that this decision will depend on the seriousness of the crime, location, time, and the order in which the extradition requests were received. It seems that the trial process for Do Kwon will be lengthy. If Do Kwon decides to appeal again, the formal extradition process will likely take a considerable amount of time.