In a recent turn of events, Do Kwon, the co-founder, and CEO of Terra, a prominent blockchain-based payment platform, has accused a “Chinese-named agency” of being responsible for the circulation of counterfeit passports. These alleged “fake passports” have been causing significant concern within the cryptocurrency community and have raised questions about security and identity verification processes.
Do Kwon Claims Ignorance of Fake Passports, Accuses “Chinese-named Agency”
During a court hearing in Montenegro, Do Kwon, the founder, and CEO of Terraform Labs, stated that he was unaware that the travel documents he was allegedly carrying were counterfeit. He further attributed the responsibility to a “Chinese-named agency,” as South Korean media outlets Segye Ilbo and MBN reported. Kwon informed the District Court in Podgorica, Montenegro, that various agencies were the source of all the purportedly forged documents, including a Costa Rica passport.
He stated: “I received my Costa Rica passport after filling in the documents required by a Singapore agency that was recommended to me by a friend. I received my Belgian passport through another agency.”
Kwon Attributes Trust in Agency to Recommendations, Withholds Name under Prosecution’s Inquiry
Kwon asserted that he had placed his trust in the agency based on a recommendation from a reliable friend. However, when questioned by the prosecution during the court hearing, the CEO, who appeared with a newly shaved head, refrained from disclosing the name of the agency.
Kwon, however, stated that the agency had a name of Chinese origin but admitted that he couldn’t recall the exact name. As news of his court appearance emerged, LUNC prices remained relatively stable on June 18.
In May, Kwon and Terraform’s former chief financial officer, Han Chong-joon, were arrested while reportedly trying to board a flight to the UAE. They have been accused of using counterfeit travel documents, charges that both individuals deny. However, both Kwon and Han are also wanted in their home country of South Korea on fraud charges.
Do Kwon Shifts Blame to Agencies Regarding Passport Issues
Shortly before the collapse of Terra ecosystem coins over a year ago, Kwon closed down his businesses in South Korea and seemingly departed from the country. During his recent court appearance, Kwon adamantly maintained Han’s innocence, urging the court to consider the following: “If somebody needs to be punished for [using a] fake passport, let that be me alone.”
Kwon has made two bail applications, while authorities in South Korea, the US, and Singapore have sought his extradition to face charges. However, the process of deporting Kwon may pose challenges as Montenegro and South Korea do not have an extradition treaty in place.
A spokesperson from the Higher Court recently stated to reporters:
“The judge of the Higher Court has ordered [that Kwon and Han] be detained for six months following the opening of an extradition case at the request of South Korea.”
The recent court appearance of Do Kwon, the CEO of Terraform Labs in Montenegro, has shed light on the alleged fake passports he was carrying. Kwon claimed to be unaware of their fraudulent nature, instead attributing the responsibility to a “Chinese-named agency.” However, he refrained from disclosing the agency’s name during questioning. Kwon’s bail applications have been met with extradition requests from South Korea, the US, and Singapore, although the absence of an extradition treaty between Montenegro and South Korea presents a significant challenge.
As the legal proceedings unfold, the future of Kwon and the potential implications for Terraform Labs remains uncertain. The accusations against him raise questions about the security and integrity of the company’s operations. Additionally, the situation highlights the need for stronger regulatory frameworks and cooperation among blockchain companies, regulatory bodies, and law enforcement agencies to combat criminal activities effectively.
The outcome of Kwon’s case will have ramifications beyond his personal circumstances. It has the potential to shape the perception of Terraform Labs and influence the cryptocurrency industry as a whole. As stakeholders closely monitor these developments, the focus shifts to strengthening security measures, fostering partnerships with regulatory bodies, and establishing a more secure and trusted ecosystem for digital transactions.
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