A Montenegrin court has sentenced Terraform Labs founder Do Kwon to four months in jail after finding him guilty of document forgery. The Basic Court in the country’s capital Podgorica shared the verdict on Monday, noting that the time spent in detention will be included in the sentence. Kwon and another Terra executive Han Chang-Joon were arrested in March for allegedly possessing falsified documents and have been in custody since then, despite local courts approving bail last week. The court also confiscated two Costa Rican passports, two Belgian passports, and two identity cards belonging to Kwon and Han.
Prior to his arrest in Montenegro, Kwon had maintained that he was not on the run even as authorities in South Korea began an international search for him, including requesting a red notice from Interpol. Both South Korean and U.S. authorities have requested his extradition to face criminal charges related to the collapse of the multi-billion dollar crypto enterprise Terra in May 2022. A High Court in Podgorica has confirmed that Kwon will remain in extradition custody for six months while South Korea’s request is under consideration.