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Do Kwon Sentenced to Four Months in Prison by Montenegro High Court

November 16, 2023
in General
Do Kwon Sentenced to Four Months in Prison by Montenegro High Court
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Do Kwon, the founder of Terraform Labs, has been sentenced to four months in prison by a Montenegrin court for falsifying documents. The decision follows an appeal by Kwon and fellow executive Han Chang-Joon, who were arrested in March 2022.

The court’s statement described the sentence as “adequate” punishment for the crime committed. Kwon and Han Chang-Joon have been in custody since their arrest and will serve their sentences before facing extradition to either South Korea or the U.S. The collapse of Terraform Labs’ crypto empire in May 2022 resulted in billions of dollars in losses for investors.

Arrest and Charges: Do Kwon and Han Chang-Joon

Kwon and Han were arrested in Montenegro in March 2022. They were accused of falsifying documents related to the issuance of UST stablecoins. The documents allegedly showed that the UST stablecoin was backed by reserves, while in reality, it was not. Kwon and Han have remained in custody since their arrest.

Montenegro Court’s Decision: Sentence and Explanation

The Montenegro court’s statement described the four-month prison sentence as “adequate” punishment for the crime committed. The court also stated that the confiscation of Kwon and Han’s passports and identity cards was necessary to prevent them from committing further criminal acts. The court’s decision was upheld by the Montenegro High Court in a recent statement.

Montenegro capital Podgorica asserted that “The imposed security measure of confiscation of the objects of the commission of the criminal offense – passports and identity cards – was necessary in order to arrest the perpetrators. prevented them from committing criminal acts in the future,”

Losses for Investors and Regulatory Action

The collapse of Terraform Labs’ crypto empire has resulted in significant losses for investors. According to CoinGecko, the LUNA cryptocurrency lost over 99% of its value in the aftermath of the collapse. The UST stablecoin also lost its peg to the US dollar, causing further losses for investors. Regulatory action has also followed the collapse. The SEC has accused Kwon of violating securities laws, and several other regulatory bodies have launched investigations into the collapse. The collapse has also led to calls for greater regulation of the cryptocurrency industry.

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Copyright for syndicated content belongs to the linked Source : Coinpedia – https://coinpedia.org/news/do-kwon-sentenced-to-four-months-in-prison-montenegro-high-court/

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