Kwon and his companies accomplice Chang-joon Han had been discovered responsible of forging official paperwork, together with passports and identification playing cards.
The “cryptocrash king” can be wished by authorities within the US and South Korea over the collapse of two digital tokens final 12 months.
Montenegrin police arrested Kwon and Han at Podgorica Airport in March whereas they had been trying to journey to Dubai with the allegedly solid paperwork.
Kwon and Han pleaded not responsible at their first courtroom listening to in Could. The sentences will embody the time that the pair have already spent in detention after their arrest in March, the courtroom mentioned.
They can even have the ability to enchantment towards the decision inside eight days of receiving written notification from the courtroom.
Kwon based Terraform Labs in 2018 and created the Terra USD stablecoin and Luna token, each of which plummeted in Could 2022 after dropping their peg to the US greenback.
The ensuing downturn wiped their $45bn (£31.3bn) market cap in a matter of hours. It triggered a domino impact that destabilised a number of monetary companies with publicity to the tokens.
South Korea issued an arrest warrant towards Kwon and 5 associates final September, however he had already fled to Singapore, the place his firm had registered.
Interpol then put Kwon on the “pink discover” listing on the request of Korean authorities, initiating a worldwide seek for his whereabouts.
“We allege that Terraform and Do Kwon failed to supply the general public with full, honest, and truthful disclosure as required for a bunch of crypto asset securities, most notably for LUNA and Terra USD,” SEC Chair Gary Gensler mentioned on the time. “We additionally allege that they dedicated fraud by repeating false and deceptive statements to construct belief earlier than inflicting devastating losses for buyers.”