DoKwon has been granted a first hearing in court to speak about charges of his passport forgery. The date of the hearing has been set to 11 May 2023.
According to the court website in Podgorica, Kwon Do-hyeong, who is being investigated in several countries for alleged fraud related to the collapse of the Terraform Labs cryptocurrency project he led, will have a court hearing on May 11 in Montenegro on charges of allegedly attempting to travel using a false passport.
Terraform Labs Pte. Ltd. is a blockchain firm that owns a stablecoin called Terra. The goal of the company is to fuel the next-generation payment network and increase the blockchain economy’s actual GDP. Terra was backed by Luna, a decentralized currency whose value is derived from Terra network transaction fees.
Kwon was detained together with Terraform Labs’ chief financial officer Han Chang-joon on 23 March 2023 at the Podgorica airport. Since then, they have both been incarcerated in the nation. Kwon was the subject of an Interpol red alert for his arrest in 2022. They were allegedly attempting to travel to Dubai with fake documents.
On 21 April 2023, a Montenegrin court announced the accusation of the duo and prolonged their custody due to flight danger. Kwon is also wanted in the United States as well as South Korea, where he’s accused of fraud and other offenses relating to the May 2017 collapse of the Singapore-based $40 billion Terra-Luna stablecoin and cryptocurrency project.
The former CEO of Terraform Labs disputed all accusations leveled against him while his company believes that South Korea’s probe into Terra-Luna has become excessively political and that the charges are without merit.
Furthermore, the attorneys representing Kwon in the United States have petitioned a judge in the Southern District of New York to dismiss a Securities and Exchange Commission (SEC) complaint accusing the Terraform Labs founder of fraud concerning “crypto asset securities.”
According to the legal complaint, Kwon’s attorneys stated that the Terra stablecoin is a currency and that the SEC’s assumption of securities legislation over digital assets is illegal.