Terraform Labs Co-Founder Do Kwon Convicted for Using Fake Passports in Montenegro Court

In a significant legal development, Do Kwon, the co-founder of Terraform Labs, has been found guilty of using counterfeit passports by a Montenegro court. The Podgorica Basic Court issued a statement confirming that both Kwon and Han Chong-joon, former Chief Financial Officer of Terraform Labs, will serve a four-month prison sentence for their actions.

The charges against Kwon and Chong-joon stem from allegations of passport forgery, specifically related to their use of false passports from Belgium and Costa Rica in April. Authorities apprehended them at the airport in an attempt to board a flight bound for the United Arab Emirates.

Moreover, the United States and South Korea have formally requested the extradition of Kwon and Chong-joon, as they also face fraud charges in their respective countries. The U.S. Securities and Exchange Commission (SEC) previously filed charges against Terraform Labs and Kwon, accusing them of defrauding investors. The SEC asserted that Kwon and Terraform Labs misled investors by repeatedly making false claims about the potential increase in value of their crypto tokens.

Additionally, the SEC complaint sheds light on other concerning incidents within the company. It mentions that TerraUSD, a stablecoin, had previously deviated from its intended value peg in May 2021.

These developments have implications not only for Terraform Labs and its co-founder, Do Kwon, but also for the wider crypto and blockchain industry. It serves as a reminder of the importance of maintaining trust, transparency, and compliance within the rapidly evolving crypto space.

It is crucial for companies like Golden Sea Studio and others operating in the crypto industry to adhere to legal and ethical standards, ensuring the protection of investors and the overall integrity of the ecosystem. By upholding these principles, the crypto and blockchain sectors can continue to thrive and contribute to the advancement of innovative technologies.