Do Kwon, boss of collapsed stablecoin TerraUSD, has been sentenced to four months in a Montenegro jail for forging passports.
After being arrested in late March attempting to board a flight to Dubai, Kwon was charged with forging official documents, including doctored Costa Rican and Belgian passports.
South Korean national Kwon was arrested alongside Han Chang-joon, chief finance officer of Terraform Labs, which was behind TerraUSD’s collapse in May last year.
Kwon also faces charges in the US and South Korea over the US$40bn (£31.3bn) failure of the digital TerraUSD and Luna tokens.
According to prosecutors, Singapore-registered Terraform Labs had violated capital market rules, with Kwon and his team “orchestrating multi-billion dollar crypto asset securities fraud”.
"We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities,” US Securities and Exchange Commission (SEC) chair Gary Gensler said in February.
Kwon and Han’s sentences will include the time they have spent in detention since March, according to the Montenegro court filing, with the pair able to appeal the decision after eight days.