Do Kwon, the co-founder of Terraform Labs, was sentenced to four months in prison in Montenegro on Monday for attempting to travel with a forged passport. Kwon was arrested in March as he tried to board a flight to Dubai at Podgorica Airport, in the country's capital.

Kwon was found guilty of forging a South Korean passport, which he used to try to enter Montenegro. He was also found guilty of using a fake name, Daniel Shin, on his passport application.

Kwon's lawyers argued that he had been trying to travel to Dubai to attend a business meeting and that he had not intended to use the forged passport to travel to any other country. However, the court found that Kwon had deliberately tried to deceive the authorities and that he had presented the forged passport in order to avoid arrest.

Kwon's sentence is the latest development in the ongoing saga surrounding the collapse of TerraUSD and Luna. TerraUSD was a stablecoin, which is a type of cryptocurrency that is designed to maintain a fixed value. However, TerraUSD lost its peg to the US dollar in May, causing a sell-off in the cryptocurrency market. Luna, which is a sister token to TerraUSD, also collapsed, losing more than 99% of its value.

The collapse of TerraUSD and Luna has been a major blow to the cryptocurrency industry. It has also raised questions about the regulatory oversight of cryptocurrencies.

Kwon is still facing charges in the United States and South Korea for his role in the collapse of TerraUSD and Luna. He is also facing a class-action lawsuit from investors who lost money in the collapse.

It is unclear what will happen to Kwon after he completes his sentence in Montenegro. He could be extradited to the United States or South Korea to face charges there. He could also be detained in Montenegro pending the outcome of the class-action lawsuit.

The sentencing of Do Kwon is a significant development in the TerraUSD and Luna saga. It is a reminder that the cryptocurrency industry is not immune to fraud and deception. It is also a reminder that the regulatory oversight of cryptocurrencies is still evolving.