A court in the southern European country sentenced Do Kwon and another South Korean national, Han Chang-Joon, Monday to four months behind bars after they were found guilty of falsifying documents, a spokesperson for the Basic Court in Podgorica told CNN. According to Reuters, Han was previously the finance officer of Terraform Labs, a blockchain platform founded by Kwon. The two men were arrested in late March while trying to board a flight from Podgorica, Montenegro’s capital, to Dubai.
Both coins lost their value in a matter of days in May 2022, wiping about $40 billion from the crypto market and setting off panic across the sector. In February, the US Securities and Exchange Commission charged Kwon and his company with defrauding investors, saying he had misled investors about the stability of TerraUSD. Kwon has also been charged with fraud in South Korea, as well as with breaches of the country’s capital markets law.