Do Kwon sentenced to four months in prison for forging documents
The founder of the infamous Terra project, Do Kwon, was found guilty of forging documents. A court in Podgorica (Montenegro) sentenced him to four months in prison. The company’s former chief financial officer, Han Chang-jung, who was detained along with Kwon for the same crime, received a similar sentence.
Both businessmen will be credited for the time they have already spent in custody.
Do Kwon continues to deny his guilt in using forged documents. He explained to the court that he did not know that the documents were fake – they were made by Kwon in some agency in Singapore.
Do Kwon and Jang Jun were arrested at the end of March. They were stopped at the airport of the country’s capital with forged documents. Montenegro borders Serbia, where the former crypto mogul has been hiding since December last year.
In February 2023, the US Securities and Exchange Commission (SEC) sued Do Kwon and Terraform Labs, accusing them of fraud and selling unregistered securities. In March, the US Attorney’s Office for the Southern District of New York filed eight counts of charges against Do Kwon, including securities fraud and wire fraud.
In addition to the United States, Do Kwon faces numerous allegations of fraud against the South Korean authorities. A court in South Korea seized the personal assets of the co-founder of Terraform Labs in the amount of more than 233.3 billion Korean won ($176 million). The judge also banned the sale of the Galleria Foret residential complex in Seoul, a new business center and several imported cars. The court also banned the disposal of Kwon’s financial assets, including securities, bank deposits and cryptocurrencies stored in personal accounts on cryptocurrency exchanges.
Do Kwon claims that he is responsible for the failure of the project, but denies malice and breaking the law. He also accuses the FTX crypto exchange and its founder Sam Bankman-Fried of market manipulation and speculation in Terra tokens.
▼
The most interesting and important news on our channel in Telegram
