Terraform Labs' Founder Do Kwon Fails To Overturn Passport Fraud Conviction

Do Kwon, the former CEO and founder of Terraform Labs, has been unsuccessful in his appeal against a passport fraud conviction mandated by a court in Montenegro.

What Happened: CryptoSlate reported on Wednesday that Kwon and his associate, Han Chang-joon, had been indicted for passport document falsification in June. Initially, the Podgorica Basic Court in Montenegro found both individuals guilty, sentencing them to a four-month prison term.

The duo sought to challenge the charges, but the Podgorica High Court upheld the original verdict and sentence. The court stood by its belief that it had “accurately and fully identified the factual circumstances” and appropriately applied the criminal code of Montenegro.

The court evaluated the actions of Kwon and Chang-joon and the uncertainty as to whether the doctored documents were used. The court deemed the seizure of the pair’s ID cards essential to avert potential criminal activities in the future.

In different court cases, authorities in Montenegro are deliberating on whether to send Kwon to either the U.S. or South Korea. He faces allegations connected to the downfall of TerraUSD and Luna, which lost $40 billion in value last year.

Why It Matters: Kwon is also sought after in South Korea and the United States on charges related to the Terra stablecoin project failure. The Securities and Exchange Commission (SEC) has also slapped Kwon and Terra with securities violation charges.

Despite the legal troubles surrounding Kwon, Terraform Labs remains operational under new management and has avoided bankruptcy filings as of November 2023.

Price Action: At the time of writing, Bitcoin BTC/USD was trading at $36,407 down 2.33% in the last 24 hours, according to Benzinga Pro. Terra Classic was trading at $0.000079 and LUNA at $0.69, both were down 5% and 11% respectively.

Photo Courtesy: July Ko On Shutterstock.com

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