Terra CEO Do Kwon to Face Court Hearing Over Passport Fraud Charges

• Do Kwon faces charges for using a fake passport, with a court hearing scheduled for May 11.
• Terraform Labs’ CEO and CFO were arrested and detained in Montenegro on March 23.
• Do Kwon’s legal team requested the dismissal of the SEC lawsuit, claiming that Terra stablecoin is a currency.

According to the court website in Podgorica, the capital city of Montenegro, bankrupt Terraform Labs’ Do Kwon will face charges for purportedly trying to travel with a fake passport in a court hearing scheduled for May 11.

The Terra CEO along with the crypto firm’s Chief Financial Officer Han Chang-joon, was arrested on March 23 at the Podgorica airport, and both have been detained in Montenegro since then. Do Kwon was detained due to an Interpol red notice calling for his arrest.

Reportedly, Do Kwon and Han, who are both South Korean nationals, were caught at the Podgorica airport while attempting to travel to Dubai with various travel documents and identification papers under different names. On April 21, the Montenegrin court announced that both were indicted, and their detention was extended due to the possibility of them fleeing the country.

Do Kwon is facing fraud charges and several other allegations related to the collapse of the Terra-Luna stablecoin and cryptocurrency project he led. Subsequently, he is wanted by prosecutors in the United States and South Korea.

However, Do Kwon has refuted all the allegations leveled against him. Additionally, Terraform Labs has declared that the investigation of Terra-Luna by South Korea has become overly politicized, and the allegations made against them are unfounded.

Do Kwon’s legal team in the U.S. has requested the dismissal of the lawsuit filed by the Securities and Exchange Commission (SEC) accusing him of fraud related to “crypto asset securities.” According to a report, Do Kwon’s lawyers argued that the Terra stablecoin is a currency, and therefore, the SEC’s allegations of securities regulation over digital assets are illegal.

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