Fugitive crypto villain Do Kwon has been jailed in Montenegro for falsifying documents.

Kwon was a co-founder of Terraform Labs – a crypto outfit that tried to create a "stablecoin" pegged to the value of the US dollar. The scheme [1]went pear-shaped in May 2022, leaving a $40 billion crater in investors' holdings.

Kwon evaded responsibility for the mess and tried to physically evade authorities, who felt he'd told fibs to attract investors and therefore wanted a word about his actions. After disappearing – and denying he was on the run – Kwon eventually emerged in [2]Montenegro .

Kwon reportedly had a long association with a Montenegrin politician

Montenegro has some cracking coastline and dramatic mountains, but Kwon may not have gone there for the scenery: it's [3]alleged he had a long association with a local politician and may even have funded their campaigns, and therefore felt the local judiciary may smile upon his activities – or at least look away.

In March 2023 Kwon put that proposition to the test by trying to leave the European nation. As he tried to board a plane bound for Dubai, authorities could not find records of his entry to Montenegro. The Costa Rican and Belgian passports he carried also aroused suspicions and led to his detention.

[4]

On Monday those dodgy docs earned Kwon four months in jail.

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The Basic Court in Podgorica on Monday [7]announced the sentence, adding that Kwon and another un-named Korean citizen have already spent almost three months inside and that time will be counted against their sentences.

[8]South Korea to treat crypto tokens and virtual assets as if they were securities

[9]Where in the world is Terraform Labs villain Do Kwon? Montenegro, actually

[10]South Korea prosecutes Terraform Labs co-founder Daniel Shin

[11]Infusion of $3.5bn not enough to revive Terra's 'stablecoin'

News of Kwon's confinement will be cold comfort to investors, but will interest authorities around the world – many of whom remain keen to have him explain his actions.

Regulators have waited almost a year to get his story: Kwon fled from South Korea to Singapore in the days before Terraform Labs crashed. The island nation [12]has sued him, South Korea has issued an [13]arrest warrant , and the United States Securities and Exchange Commission has [14]charged him with fraud.

Kwon will emerge from Montenegro's penal system in a few weeks. Grab some popcorn, dear reader, as we await news of which jurisdiction tries to grab him next. ®

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[1] https://www.theregister.com/2022/05/17/terrausd_luna_crash/

[2] https://www.theregister.com/2023/03/24/do_kwon_montenegro/

[3] https://www.yna.co.kr/view/AKR20230609002151109

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZJEkY589NH-r2VJC6HZ4WwAAAJY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZJEkY589NH-r2VJC6HZ4WwAAAJY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZJEkY589NH-r2VJC6HZ4WwAAAJY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[7] https://sudovi.me/ospg/sadrzaj/D264

[8] https://www.theregister.com/2023/02/07/south_korea_crypto_securities_regulation/

[9] https://www.theregister.com/2023/03/24/do_kwon_montenegro/

[10] https://www.theregister.com/2023/04/26/daniel_shin_prosecution/

[11] https://www.theregister.com/2022/05/17/terrausd_luna_crash/

[12] https://www.theregister.com/2022/11/01/terraform_labs_and_crypto_bro/

[13] https://www.theregister.com/2022/09/15/terraform_ceo_do_kwon_warrant_sk/

[14] https://www.sec.gov/news/press-release/2023-32

[15] https://whitepapers.theregister.com/