The Terraform Labs founder. Do Kwon, has been sentenced to four months in prison as he faces extradition based on compliance with his sentence. The case comes in as an addition to various court cases that have been raised and caused a change in the crypto space, including cases such as the XRP legal battle and FTX.
Do Kwon is now appealing for a prison sentence over allegations of falsifying documents based on the statement made on Thursday. Still, the major founder is facing a setback in his legal battle as the ruling went against him. Fellow Terra executives have also been implicated in the legal battle, but things are not looking good for them.
Do Kwon’s legal battle
The Montenegro High Court recently presented its review and denied Do Kwon his appeal for a lighter sentence. The appeal was to note a four-month sentence that was in light of the Thursday statement.
According to the proceedings, the High Court rejected Do Kwon appeals of a lower court judgment as unfounded. The court sentenced the Korean founder and executives of his Terra firm, including Han Chang-Joon, back in June.
Do Kwon was arrested in Montenegro in March, and this was a year after the dramatic collapse of his Terraform Labs crypto empire. Since their arrest, they have remained in custody, and currently, Do Kwon faces extradition to the United States or South Korea upon completion of his sentence in Balkan nation.
According to a Basic Court of Montenegro’s capital Podgorica, the four-month prison settlement is adequate punishment for the crimes committed by the Korean founder. The court added:
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.Montenegro High Court
Proceedings in Do Kwon’s case
In May, Do Kwon’s attorney proposed a $437,000 bail that was also denied under falsified travel documents. The attorneys appealed for a supervised bail amid his Montenegro charges of attempting to travel using falsified documents.
The Montenegro authorities arrested Han Chang-Joon and Do Kwon, and local prosecutors charged them with document forgery.
However, the defendants denied the crimes against them and presented their defense at the high court hearing held on Thursday in Podgorica, the country’s capital. Based on notice of the hearing outcome, the statement explained:
Instead of detention, the defendant’s lawyer suggested that bail and supervision measures be imposed, prohibiting them from leaving the apartment and periodically reporting to a certain state authority.
The lawyers explained that their Korean clients, who are still in custody, proposed bail of 400,000 euros. This was about $437,000 each. Still, this appeal was also denied in the trial on June 16.
After the case is wrapped up in Montenegro, Do Kwon is set to face other charges in the countries where he is expected to be extradited. Do Kwon faces criminal charges in both states, including the Terraform Labs collapse in mid-2022. This collapse wiped out an application of $40 billion from the crypto market.
This case comes in as an addition to crypto cases that have escalated since last year. Among them include the Sam Bankman-Fried legal case with the United States Securities and Exchanges Commission (SEC) over allegations of fraud and mismanagement of funds.
The crypto world is still in recovery from the collapse of major firms dealing with digital currencies. Moreover, the implications of such proceedings have caused shifts in the market and this has mostly been influential in various currencies like Solana (SOL) and Ripple‘s XRP.