Terraform Labs founder Do Kwon and former CFO Han Chong-joon have been sentenced to four months in prison by a Montenegro court for using a false Costa Rican passport. Kwon denied forging the passport and instead claimed third-party agencies provided him with allegedly fraudulent travel documentation.
The time both men spent in detention will be taken into account, according to the Montenegro Basic Court’s statement. Kwon’s defense argued that he had been traveling with the passport “for years” and had no reason to doubt its authenticity.
The verdict highlights the importance of proper documentation and compliance in the cryptocurrency industry. It also underscores the potential legal risks associated with using fake or forged documents in any context.
Cryptocurrency firms should ensure their employees adhere to all relevant laws and regulations, including those governing travel and identification documents. Failure to do so can lead to serious legal consequences and reputational damage.