TerraUSD: South Korea’s King Do Kwon Jail

Do Kwon, the cryptocurrency manager behind the $40bn (£31.3bn) collapse of terraUSD and Luna tokens, has been sentenced to four months in prison in Montenegro.

Mr. Kwon was found guilty of forging official documents.

He was arrested in March while trying to board a flight to Dubai at Podgorica Airport, in the country’s capital.

Kwon is also facing charges in the United States and South Korea over the collapse of the two digital tokens last year.

Han Changjun, a former chief financial officer of Terraform Labs, was also sentenced to four months in prison after being found guilty of the same charges.

Mr. Kwon and Mr. Han pleaded not guilty at their first court hearing in May.

The provisions will include the time Mr. Kwon and Mr. Han have already spent in detention after their arrest in March, The court said in a statement.

They will also be able to appeal the ruling within eight days of receiving written notice from the court.

Last year, a South Korean court issued arrest warrants for Mr. Kwon and five other individuals in connection with the case.

The plaintiffs said they believe Terraform Labs, which is registered in Singapore, violated capital market rules.

Montenegro does not have extradition treaties with the United States or South Korea.

The collapse of the terraUSD stablecoin and associated token Luna rocked the cryptocurrency markets in May 2022.