Montenegro prosecutors on Thursday charged Terra’s founder, Do Kwon, for falsifying his identity in an attempt to move to Dubai from the Balkans capital in March, according to a lawsuit filed at the Montenegrin Basic Court.
The lawsuit will mean that Do Kwon’s native nation, South Korea, and the United States will have an extended wait to extradite the Terra creator from Montenegro.
South Korea applied for extradition in March, requesting that Montenegro transfer the Kwon to its custody. The blockchain developer was also indicted by the U.S. Securities and Exchange Commission for offering and selling an “interconnected suite of crypto asset securities.”
Do Kwon has been on the run since last year after disappearing from his apartment in Singapore after Terra’s collapse. Although he denies being on the run, US and South Korean regulators have been diligently hunting for the ex-Terra boss.
From Hero to Hide-and-Seek
Airport security arrested Do Kwon late last month at the Podgorica Airport in Montenegro as he intended to move to Dubai with a fake Costa Rican passport. However, a few months ago, he was one of the influential names in the crypto sector.
Before the fall, his Terra stablecoin was among the most trusted dollar-pegged crypto assets. Kwon even once boasted that he would build a network rivaling Ethereum. The Terra creator is now serving an extended time behind bars.
Before his arrest, he and his associate, Han Chang-Joon, bought and lived in a $2.2 million apartment in Belgrade, Serbia, and even formed a new company in Kwon’s real name. Serbian authorities have now seized the property after the news emerged.
More Prison Time?
Do Kwon and his associate risk spending between three months and five years in prison if found guilty of identity falsification. The disgraced Terra boss might even face more prison sentences as there are other lawsuits outside Montenegro on the wait for his extradition.
The court’s initial ruling was to hold Kwon and Chang-Joon for 30 days. However, prosecutors will increase the jail term owing to the recent lawsuit.
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