Terra founder Do Kwon must serve 4 months in prison

Do Kwon must go to jail for trying to use a fake passport. The jail term: four months. The Terra founder's alleged fraud is still awaiting trial.

For trying to use a forged Costa Rican passport to leave Montenegro, Do Kwon was sentenced to four months in prison.

According to local media advocated the Terra founder innocent last week, however. Kwon has been in pretrial detention since March while authorities wrangle over his extradition to the U.S. or South Korea.

The last three months have been counted in the sentence now set, the Podgorica Basic Court said in a statement.

Do Kwon's lawyers can appeal within 30 days. It remains to be seen what impact the decision will have on the bail of 40,000 euros.

As part of the lawsuit, prosecutors have already frozen Do Kwon's personal assets - about US$176 million.

In addition, the court prohibited the sale of Kwon's luxury apartment in Seoul and a number of imported cars. South Korean law prohibits defendants from disposing of the proceeds and property of a crime.