Do Kwon, the cryptocurrency executive responsible for the dramatic $40 billion (£31.3 billion) downfall of the terraUSD and Luna tokens, has received a four-month jail sentence in Montenegro.
Do Kwon, the cryptocurrency executive responsible for the significant collapse of the terraUSD and Luna tokens valued at $40 billion (£31.3 billion), has been sentenced to four months in jail in Montenegro. The charges against him involve forging official documents.
Mr. Kwon was apprehended in March at Podgorica Airport while attempting to board a flight to Dubai. Additionally, he is facing charges related to the token collapse in the United States and South Korea.
Han Chang-Joon, the former finance officer of Mr. Kwon’s company, Terraform Labs, has also received a four-month prison sentence for the same charges.
Both Mr. Kwon and Mr. Han pleaded not guilty during their initial court hearing in May. The court clarified that the sentences would account for the time already spent in detention since their arrest in March. The verdict can be appealed within eight days of receiving written notification from the court.
In February, US regulators accused Mr. Kwon and Terraform Labs of orchestrating a multi-billion dollar crypto asset securities fraud.
The US Securities and Exchange Commission (SEC) alleged that the company failed to provide the public with complete and accurate disclosure regarding Luna and TerraUSD.
Last year, a South Korean court issued arrest warrants for Mr. Kwon and five other individuals associated with the case, citing violations of capital market rules. Notably, Montenegro does not have extradition treaties with the US or South Korea.
The collapse of the terraUSD stablecoin and Luna token had a significant impact on cryptocurrency markets in May 2022, leading to widespread disruption and financial losses.
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