Do Kwon, co-founder of Terraform, has pleaded not guilty to false travel documents.

Image Credits: Rafael Henrique / SOPA Images / LightRocket / Getty Images

Terraform Labs co-founder Do Kwon pleaded not guilty in court in Montenegro on Thursday to charges of forging his passport and travel documents.

Kwon’s trial comes a month after Kwon and Chang-Joon Han, Kwon’s ex-partner, pleaded not guilty. Podgorica airport in the capital of MontenegroWhen he tried to fly to Dubai. Their lawyers asked for bail at €400,000 ($437,000) each and Montenegro proposed house arrest. The next court hearing is scheduled for June 16.

On May 7, 2022, Terraform Labs’ stablecoin TerraUSD (UST), an algorithmic stablecoin that works with its sister coin Luna He lost the $1 peg.. The incident wiped out nearly $40 billion in market value and destroyed various crypto companies.

A year after the accident, Khun is now in a Montenegrin prison and under investigation in the US and South Korea. If Kwon is accused of falsifying the documents, he He will have to serve his prison term in Montenegro Before he was extradited to the US or South Korea, the Montenegrin Ministry of Justice said in March.

As a reminder of what has happened to Terraform and founder Kwon over the past 12 months, we present the risk of slow motion. For the current five-year company, which It launched TerraUSD stablecoin and Luna in 2019 and moved its headquarters to Singapore in 2020.

May 2022

• Terraform Labs’ stablecoin Terra, which was supposed to maintain a 1:1 peg to the US dollar, crashed on May 7, 2022.
• A group of crypto investors in South Korea He filed a lawsuit against Kwon. (May 19, 2022)

June 2022

• South Korea launches investigation into Terraform Labs.
• Prosecutors in Seoul have banned 15 former employees of Terraform from leaving South Korea while they investigate the crypto firm behind TerraUSD and Luna. (June 21, 2022)

September 2022

October 2022

• South Korean government Ordered to be set aside. Kwon’s passport, intensifying pressure on the crypto entrepreneur to return to his country. (October 5, 2022)
• Kwon said. South Korean prosecutors said the case against him was illegal and politically motivated. (October 18, 2022)

December 2022

February 2023

March 2023

April 2023

• Local media reported on April 13 Kwon sent 8 million won (~$7 million) to Kim & Chang’s law firm in South Korea before Terra and Luna collapsed. This shows Kwon is aware of the crisis and anticipates a possible legal case.
• The American judge refused Kwon and Terraform Call have asked the Securities and Exchange Commission (SEC) to withdraw a request for access to documents related to Singapore’s monetary authority Terraform and Luna Foundation Guardian (LFG). (April 18, 2023)
• Shin, co-founder of Terraform. Accused Violation of the capital market law in South Korea, including fraud and fraud in connection with the TerraUSD and Luna disaster. South Korean prosecutors have frozen 246.8 billion won ($184.7 million) worth of people-related assets. A spokesperson for the Korean Prosecutor’s Office confirmed to TechCrunch that Shin’s first trial will take place on May 26.

May 2023

• Sung-Han Dan, Director of the Joint Financial Crimes Unit of the South Korean Prosecutor’s Office He said in an interview with the WSJ.“Investigating the case in South Korea is the most efficient way to bring justice,” he said, as most of the key accomplices and evidence linked to the Terraform events are located in South Korea.
• This week, South Korea froze about 233.3 billion won ($176 million) worth of Kwon’s assets and assets, the Seoul Prosecutor’s Office confirmed to TechCrunch. A South Korean court has banned Kwon from selling his house, cars and financial assets such as securities, bank deposits and cryptocurrencies on cryptocurrency exchanges.