In a recent court hearing in Montenegro, Do Kwon, the founder of Terraform Labs, denied allegations of forging travel documentation and refuted any financial connections with Milojko Spajić, the leader of the Europe Now party. The South Korean entrepreneur claimed that he was unaware of the alleged forgery of his passport and instead blamed a Chinese-named agency for providing him with the documents.
According to a report by South Korean news outlet Segye Ilbo on June 17, Kwon explained to the Montenegrin Basic Court that he obtained his passports, including a Costa Rican passport, through third-party agencies. He stated, “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.” Kwon had been using his Costa Rican passport for several years and had no reason to question its authenticity.
When pressed for further details about the agencies he used, he admitted that he couldn’t recall the exact names, mentioning that they were in Chinese. Kwon appeared in court alongside his former colleague and Terraform Labs’ former chief financial officer, Han Chong-joon.
Financial Ties Disputed: Kwon Refutes Alleged Donations to Milojko Spajić
Besides denying forgery allegations, Kwon also refuted claims that he made financial donations to Milojko Spajić, the former finance minister of Montenegro and current leader of the Europe Now party. Kwon’s lawyers categorically denied these allegations, stating, “This is categorically denied and it is not true.”
However, reports from a regional branch of Radio Free Europe on June 17 suggest that Kwon had contacted Spajić through a letter sent to several Montenegrin officials prior to the recent elections in the country. Spajić denied any ties with Kwon, but rumors of their financial connections have been widely covered by various news outlets in Montenegro.
Following the court hearing, Judge Ivana Becić announced that she would issue a verdict on the forgery charges on June 19, local time. Kwon will remain in extradition custody for a maximum of six months while the local court considers South Korea’s extradition request.
Chronology of Events Surrounding Kwon and Chong-joon
Kwon and Chong-joon were arrested by local authorities on March 23 for allegedly falsifying passports used in an attempt to leave Montenegro on a private flight to Dubai. Initially, their lawyers secured approval for a proposed bail amount of $436,000 (400,000 euros). However, this decision was reversed on appeal on May 24. Subsequently, on June 5, the appeal was dismissed, and bail was granted for Kwon and Chong-joon. Both individuals will be closely monitored by local police, and any violation of the approved conditions or departure from their residence will result in forfeiture of their bail.
It is worth noting that Terraform Labs’ Terra ecosystem experienced a collapse in May 2022, leading to estimated losses of up to $40 billion. Crypto’s reputation has been badly damaged by these events, and regulators have been focusing on it. Let’s see where the waves settle.
