• Do Kwon is currently detained in Montenegro
  • He could serve at least one year in prison for the alleged forgery of documents
  • His situation mirrors that of Sam Bankman-Fried before he was extradited to the U.S.

Do Kwon, one of the founders of Terraform Labs, the company behind the so-called algorithmic stablecoin TerraUSD (UST) which collapsed last year, could reportedly face a harsh life in a Montenegro prison as he awaits his extradition to the U.S. or South Korea.

Now in the hands of Montenegrin authorities, Kwon could serve at least one year in prison in the country for the alleged forgery of documents.

Montenegro jails and prisons are known for "torture and other cruel, inhuman or degrading treatment or punishment," according to a 2020 human rights report by the U.S. Department of State (DOS), which also claimed that "police tortured suspects and that beatings occurred in prisons and detention centers across the country."

"Things haven't changed since the report," a criminal defense lawyer in Montenegro who chose to remain anonymous claimed, as per Protos.

"Upon arrest, you're held in quarantine for 10 days to ensure you're not suffering from COVID-19," the criminal defense lawyer added.

"The rooms are pretty okay — you're sharing with just one or two people. But after the quarantine period, detainees are moved to a general facility along with others awaiting trial," the lawyer said further, noting that prison "conditions here are far worse than quarantine."

The criminal defense lawyer also shared that what awaits Kwon is a prison where "rooms are 8 meters squared and very crowded," adding that there are "about 10 to 11 people in a room — there's usually not even a bed."

Detainees are said to be allowed a 30-minute "walk around the block" every day.

Moreover, the DOS report indicated that "there were some poor conditions in prisons and pretrial detention facilities due to overcrowding and access to medical care." It also said the "level of serious inter-prisoner violence was a long-standing and persistent problem at the remand prison and the Institute for Sentenced Prisoners."

Both the U.S. and South Korea, countries with at least far friendlier prism conditions, officially requested Kwon's extradition Wednesday since both have filed criminal charges against the former crypto fugitive.

However, it is still unclear whether the U.S. or South Korea will gain custody of Kwon, who is a South Korean national.

Kwon's current situation mirrors what happened to former FTX CEO Sam Bankman-Fried, minus the complication of another country requesting his extradition.

Bankman-Fried was also held in a detention facility with reportedly harsh conditions and cases of abuse against prisoners. He was then extradited from the Bahamas to the U.S. in December 2022 and is currently awaiting his first criminal trial scheduled for Oct. 2.

Do Kwon was arrested Thursday in Montenegro after being caught trying to catch a flight using fake Costa Rican travel documents