Terraform Labs ex-CEO Do Kwon, who appeared in court in Montenegro, denied the false passport accusations.
Former CEO of Terraform Labs, Do Kwon, pleaded not guilty in Montenegro, where he was detained on an international search warrant and accused by local authorities of using false travel documents. Do Kwon and Terraform Labs co-founder Han Chang-Joon were caught boarding a private jet to escape to Dubai in March.
Do Kwon’s Assets Frozen
Kwon has been on the run for months after the collapse of TerraUSD led to a criminal investigation in South Korea.
Defense lawyer Branko Andjelic proposed that they be released on bail of 400,000 euros each. However, prosecutor Haris Sabotic objected to the proposal, saying that they both had sufficient financial means. The next hearing, in which the defendants will be tried, is scheduled for June 16.
Kwon is accused by US prosecutors of orchestrating a long-standing cryptocurrency scam that wiped out at least $40 billion in market capitalization. Do Kwon faces similar charges in South Korea, where he is a citizen. Both countries want Kwon’s extradition from Montenegro, but justice officials said they would consider handing him over only after local criminal proceedings are completed.
Montenegrin authorities announced in March that Kwon and Chang-Joon were found to be carrying at least one South Korean passport, as well as Belgian and Costa Rican travel documents.
According to Interpol and Montenegro, Belgian and Costa Rican passports were fake. Kwon and Chang-Joon said in court that the Costa Rican passports they tried to use were valid. Under Montenegrin law, the penalty for using forged documents is up to five years in prison.
South Korean officials said last month that those involved in the project made a profit of 463 billion won before the bankruptcy of TerraUSD.
South Korean prosecutors froze approximately 233 billion won of Kwon’s assets, including his house and luxury car in Seoul, along with securities, bank deposits and cryptocurrencies, the Korean Economic Daily reported on May 11.
