KWON'T ESCAPETerra Luna Founder, Do Kwon, Responsible for $40 Billion Crypto Crash, Jailed

Do Kwon, the cryptocurrency executive responsible for the $40 billion collapse of the terraUSD and Luna tokens, has been sentenced to four months in jail in Montenegro. The court found him guilty of forging official documents. Kwon’s arrest took place in March at Podgorica Airport when he attempted to board a flight to Dubai.

Kwon is also facing charges in the United States and South Korea related to the collapse of the two digital tokens last year. Han Chang-joon, the former finance officer of Kwon’s company Terraform Labs, received the same four-month prison sentence after being found guilty of the same charges.

Both Kwon and Han initially pleaded not guilty during their first court hearing in May. The court clarified that the sentences would include the time they had already spent in detention since their arrest in March. They have the option to appeal the verdict within eight days of receiving written notification from the court.

In February, US regulators charged Kwon and Terraform Labs with orchestrating a multi-billion dollar crypto asset securities fraud. The US Securities and Exchange Commission (SEC) accused them of failing to provide full and truthful disclosure to the public regarding Luna and TerraUSD. The collapse of the terraUSD stablecoin and Luna token had a significant impact on cryptocurrency markets in May 2022.

Last year, a South Korean court issued arrest warrants for Kwon and five other individuals involved in the case. Prosecutors believed that Terraform Labs, registered in Singapore, had violated capital market rules. Notably, Montenegro does not have extradition treaties with the US or South Korea.