Do Kwon given 4 months in prison by Montenegrin court

Do Kwon is being transferred to a court in Podgorica, Montenegro, for trial on passport forgery charges Friday. [VIJESTI]

Terraform Labs co-founder Do Kwon was sentenced to four months in prison by a Montenegrin court for passport forgery.

Kwon, 32, who was behind cryptocurrencies that suffered a multibillion-dollar crash last year, and his chief financial officer, identified only by his surname Han, were arrested at Podgorica Airport on March 23 after attempting to travel to Dubai with fake passports.

The Basic Court in Podgorica announced it handed four-month prison terms to both. They denied the charges during previous hearings.

Earlier this month, the court granted bail to both on the condition that they each pay 400,000 euros ($430,000) in bail money and are placed in confinement under police surveillance.

Korea and the United States are seeking his extradition.

The duo had been on the run after fleeing Korea while under a probe in connection to the crash of Terraform Labs' TerraUSD and Luna coins in May last year, which wiped out nearly 50 trillion won ($38 billion) in market value.

Korean prosecutors have since sought an arrest warrant for Kwon on allegations that included providing investors with false information and violating the capital market law.

Interpol also issued a red notice, used for the highest level of wanted suspects and criminals. His passport has since been invalidated.

Kwon is also wanted by the U.S., where he is charged with fraud by federal prosecutors in New York.

In March, the Montenegrin justice minister said which country Kwon will be extradited to will be determined based on the location, the time of his criminal offense and other factors.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]