Do Kwon sentenced to 4 months in Montenegro for forgery.

The founder of Terraform Labs, Do Kwon, has been sentenced to four months in jail by a court in Montenegro after being found guilty of document forgery.

A Basic Court in the country’s capital, Podgorica, announced the verdict on Monday, stating that the time spent in detention will be included in the sentence.

The South Korean national was arrested in March in Montenegro for alleged possession of falsified documents, along with another Terra executive, Han Chang-Joon. Despite local courts approving bail last week on the second try, the two have remained in custody since their arrest.

As part of the same verdict, two Costa Rican passports, two Belgian passports, and two identity cards belonging to Kwon and Han were confiscated.

Prior to his arrest in Montenegro, Kwon denied running away, even as South Korean authorities began an international search for him, including requesting a red notice from Interpol. Both South Korean and U.S. authorities have requested his extradition to face criminal charges related to the collapse of the multi-billion dollar cryptocurrency enterprise Terra in May 2022.

A High Court in Podgorica has confirmed that Kwon will remain in “extradition custody” for six months while South Korea’s request is under consideration.

UPDATE (June 19, 13:34 UTC): This article has been updated to include more detail throughout.

Edited by Parikshit Mishra.