Do Kwon, the founder of Terra, and his business partner Hon Chang-Joon have been arrested in Montenegro for allegedly using fake Costa Rican passports and forging official documents to enter the country.
The two men were also found in possession of laptops and other devices. Both South Korea and the US have requested their extradition, with South Korea seeking the extradition of both individuals and the US only after Kwon.
According to Montenegro’s justice minister, Marko Kovac, both men are being investigated for possession of false documents, which could carry a potential sentence of up to five years in prison. It is not yet clear which country they will eventually be extradited to.
Prosecutors in New York have already charged Kwon with securities fraud, wire fraud, and commodities fraud. Both South Korea and the US are also expecting the computers found in their possession to be handed over.
Kwon reportedly told officials in Montenegro that he was used to receiving “VIP treatment” when in other parts of the world.
However, his and Joon’s legal troubles appear to be far from over as they continue to be caught in the crossfire between South Korea and the US over their extradition.