In a recent court hearing held in Montenegro Basic Court, the founder of payment company Terraform Labs, Do Kwon, blamed the Chinese agency for issuing fake travel documents. Do Kwon confess he was not aware whether the travel documents issued by the Chinese agencies were fake or legit.
A report issued by the South Korean newsroom Segye Ilbo revealed that Do Kwon obtained his Chinese and Costa Rican travel documents through an intermediary. In his arraignment at Montenegrin Basic Court, Do Kwon confirmed to have completed the registration process necessary for obtaining the Costa Rica passport.
Do Kwon Denies Claims to Forge Passport
He later submitted his supporting documents to the Singaporean agency after being referred by his closest ally. Do Kwon added that he received his Belgian travel document through a different agency.
After the authority greenlighted his Costa Rica travel document, Do Kwon has been touring places using his passport. In his opinion, Do Kwon regretted having never questioned the authenticity of his Costa Rica document.
Following Do Kwon’s submission, one prosecutor requested him to provide a detailed report on the agency he used to obtain the travel documents under questioning. Responding to the prosecutors’ embroiled argument, Do Kwon stated that most travel agencies he contacted were based in China.
In his comment, Do Kwon mentioned that he couldn’t recall the names of the travel agencies. Previously Montenegro Prime Minister Dritan Abazovic had requested the authority to investigate the relationship between Do Kwon and the former finance minister Milojko Spajić. Abazovic alleged that Do Kwon provide financial support to the Europe Now Party led by Spajic.
Terraforms Founder Faces Legal Charges
The 31-year-old cryptocurrency developer vehemently refused to have provided any political donation to Spajić. Citing a report issued by the Prague media site Radio Free Europe Do Kwon is accused of sharing a letter he had sent to Spajic during the previous election. Some of the Montenegrin officials confirmed receiving the letter from Do Kwon.
In a follow-up statement, a defense lawyer representing Do Kwon confirmed that the political donations allegations were categorically denied. He stated that the accusations concerning the financial aid provided by Do Kwon to Spajic were false.
Despite Do Kwon and Spajic relationship being a point of discussion, the political aspirant denied having any ties with the founder of Terra.
Judge Ivana Becić anticipates announcing a court ruling concerning Do Kwon’s fake passport charges on June 19. In the meantime, Judge Becic ordered Do Kwon to be placed under extradition custody for six months.
Will the Court Release Do Kwon?
On March 23, Montenegro law enforcers arrested Kwon and Terraforms chief financial officer Han Chong-Joon at the airport. The two were caught attempting to board a flight to Dubai using fake documents at the inspection point.
Months after their arrest, the legal team representing Kwon and Chong-Joon requested parole. The court agreed to release the two on bail, amounting to around $436000.
Days after, the prosecutors appealed, urging the court to reconsider Do Kwon’s bail term. On May 24, the court revoked the $436000 bail on Kwon and Chong-Joon.
After a prolonged legal tussle between the prosecutors and the defense team, the court dismissed the appeal and approved the cash bail. However, the court ordered the enforcement unit to initiate Do Kwon’s home arrest and closely monitor his movements throughout the legal proceedings.
Additionally, the court outlined the rules that Do Kwon must follow under home arrest. Under certain conditions, the court agreed to terminate the bail. Meanwhile, the court urged Kwon and Chong-Joon to observe the approved condition of the home arrest.
In May 2022, the Terra network suffered devaluation challenges, prompting Terraforms Labs to suspend blockchain network activities. The suspension of the Terra platform aimed at allowing the firm to prevent governance attacks.
It was reported that Terra’s native token LUNA plummeted by 99%, exposing customers to losses of $40 million.