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Do Kwon, the founder and former CEO of Terraform Labs, has lost his appeal in a Montenegro court after being convicted of passport fraud. Along with his associate Han Chang-joon, Kwon was found guilty of falsifying passport documents and sentenced to four months in prison. The High Court in Podgorica upheld the conviction and sentence, stating that the lower court had correctly determined the facts and applied the appropriate criminal code. The court also noted that the confiscation of Kwon and Chang-joon’s identity cards was necessary to prevent future criminal acts. Kwon is also facing criminal charges in South Korea and the U.S. related to the failed stablecoin project Terra. The passport fraud sentence may have prevented his extradition to the U.S. to testify in the securities case. Despite these legal troubles, Terraform Labs continues to operate under new leadership and has not filed for bankruptcy.