Terraform Labs founder Do Kwon reportedly told a court in Montenegro that he was unaware that the passport he was traveling with was fake, and instead blamed it on a Chinese agency.
According to Jun 17 a report From South Korean news outlet Segye Ilbo, Kwon told the Montenegrin Basic Court that he allegedly received his passports and travel documents, including a Costa Rican passport, through overseas “agencies”.
“I received my Costa Rican passport after filling out the required documents from a Singaporean agency recommended to me by a friend. I received my Belgian passport through another agency.”
According to Kwon, because he had been traveling on his Costa Rican passport for “years”, he had no reason to doubt his authenticity.
Prosecutors pressed Kwon for more details about the agency he used to obtain his passports, but Kwon said he could not “remember exactly,” adding that he only knew the name of the agency was “in Chinese.”
Kwon was questioned along with his colleague and former Terraform Labs CFO Han Chong-joon.
In addition to denying falsifying travel documents, Kwon denied allegations that he had made any financial donations to Montenegro’s former Finance Minister Milojko Spajic, the current leader of the Europe Now party.
According to Jun 17 a report From a regional arm of Radio Free Europe, Kwon allegedly made contact with Spaji in a letter he sent to several Montenegrin officials in the days leading up to the country’s final round of elections.
“This is categorically unacceptable and incorrect,” Kwon’s lawyers said.
Spaji denied having relations with Kwon but their financial connections were rumored as well Covered It was heavily reported by various news outlets in Montenegro.
Korean media reported that Do Kwon had been secretly sponsoring a prominent Montenegrin politician for years using illegal funds. Two days ago, a Montenegrin High Court approved Do Kwon’s bail application again, allowing him to be released from prison. https://t.co/aNqYkKG70H
– FatMan (FatManTerra) June 9, 2023
After the hearing, Judge Ivana Pesic announced that she would issue a ruling on the forgery charges on June 19, local time. Kwon will remain in detention for up to six months while South Korea’s extradition request is considered by the local court.
Related: The SEC argues against Denton’s motion to dismiss Terraform and Do Kwon’s lawsuit
Kwon and Chong Joon were arrested by local authorities on March 23 after they were accused of forging passports that were used in an attempt to leave Montenegro on a private flight to Dubai.
The couple’s lawyers initially received approval for the proposed €400,000 ($436,000) bail, but that decision was overturned on appeal on May 24. On June 5, this appeal was rejected, and Kwon and Chung Joon were released on bail. The spouses will be closely monitored by the local police, and if they leave their place of residence or violate the approved terms, their bail will be forfeited.
Terraform Labs’ Terra ecosystem collapsed in May 2022, resulting in an estimated loss of up to $40 billion.
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