According to a South Korean news outlet Segye Ilbo report on June 17, Terraform Labs founder Do Kwon denied that his passport was allegedly forged while appearing in a Montenegro court. Instead, he shifted the blame onto a Chinese agency.
Kwon stated that he had received his purportedly forged passports and travel documents, including a Costa Rican passport, through third-party agencies. He explained he had used his Costa Rican passport for years and had no reason to doubt its authenticity.
“I received my Costa Rica passport after filling in the documents required by a Singaporean agency that was recommended to me by a friend. I received my Belgian passport through another agency.”
The prosecution sought further information about the agency responsible for the passports, but Kwon claimed he couldn’t recall the exact details. He only remembered that the agency’s name was in Chinese.
During the court proceedings, Kwon was questioned alongside his colleague and former Terraform Labs Chief Financial Officer, Han Chong-joon.
In addition to denying involvement in passport forgery, Kwon also refuted allegations that he had made financial donations to Milojko Spajić, Montenegro’s former finance minister and the current leader of the Europe Now party. Kwon’s lawyers unequivocally stated that these claims were false.
Spajić also denied having any connections to Kwon, but the alleged financial ties received significant coverage from various news outlets in Montenegro.
Korean media reports that for years, Do Kwon had secretly been sponsoring a prominent Montenegrin politician using illegal funds. Two days ago, a Montenegro high court approved Do Kwon’s bail request again, allowing for his release from prison. https://t.co/aNqYkKG70H
— FatMan (@FatManTerra) June 9, 2023
Judge Ivana Becić, following the hearing, announced that she would deliver a verdict on the forgery charges on June 19. Kwon will remain in extradition custody for six months while the local court reviews South Korea’s extradition request.
Local authorities arrested Kwon and Chong-joon on March 23 after being accused of falsifying passports, which they allegedly intended to use for a private flight to Dubai from Montenegro.
The pair’s lawyers initially secured approval for their proposed bail of 400,000 euros ($436,000). However, this decision was overturned on May 24 after an appeal. On June 5, the appeal was dismissed, and bail was granted for Kwon and Chong-joon. Local police will closely monitor their activities, and violating the approved conditions or leaving their residence will result in forfeiture of their bail.
The Terraform Labs’ Terra ecosystem collapse in May 2022 resulted in estimated losses of up to $40 billion.