In a recent court hearing, Terraform Labs founder Do Kwon has denied forging travel documentation and refuted having any financial ties to Europe Now party leader Milojko Spajić. Kwon told a Montenegro court that he wasn’t aware the passport he was traveling with was allegedly forged and instead pinned the blame on a Chinese-named agency. Kwon claimed he received his Costa Rican and Belgian passports through third-party agencies recommended by a friend. Due to having traveled with his Costa Rican passport for years without any issues, Kwon had no reason to doubt its authenticity.
Facing prosecution, Kwon was unable to provide further details on the agency he used for his passports, only stating that he knew the agency’s name was “in Chinese.” Kwon was questioned alongside Han Chong-joon, former Terraform Labs chief financial officer.
Kwon also vehemently denied allegations of making any financial donations to Montenegro’s former finance minister, Milojko Spajić. Spajić has faced heavy media scrutiny surrounding rumored financial connections to Kwon, though he has also denied having ties to Kwon.
Judge Ivana Becić announced that a verdict regarding the forgery charges against Kwon will be issued soon, and Kwon will be held in extradition custody for up to six months while the local court considers South Korea’s extradition request.
Both Kwon and Chong-Joon were arrested on March 23 after being accused of falsifying passports in an attempt to leave Montenegro on a private flight to Dubai. Initially granted bail but later reversed on appeal, the two were ultimately granted bail in early June, with local police monitoring their movements.
In 2022, Terraform Labs’ Terra ecosystem faced a collapse, leading to losses estimated at up to $40 billion. With ongoing legal matters and financial losses, the future of Terraform Labs and its Terra ecosystem remains uncertain.
Source: Cointelegraph
