Terra co-founder Do Kwon could potentially be rereleased on bail again following a court ruling in Montenegro.
According to an official release from the Basic Court, Podgorica, an appeal against an earlier bail agreement by the State Prosecutor’s Office was cast aside, allowing Do Kwon and Terraform Labs’ chief financial officer Han Chang-Joon to await further legal proceedings under house arrest in the country.
The court reinstated the bail terms initially set during a hearing on May 12, requiring both individuals to pay 400,000 euros ($436,000) each to secure their release from custody. Kwon and Chang-Joon are now subject to strict bail conditions and cannot leave Chang-Joon’s legal residence in Montenegro.
To secure their bail, Kwon and Chang-Joon provided personal and financial information to the local authorities, including evidence such as a sales contract and property registration for an apartment, parking space, and basement owned by Chang-Joon. Kwon also submitted an invoice for a vehicle and bank account statements.
The bail amount was set deliberately high to discourage the defendants from attempting to flee the country.
Under the terms of their bail, Kwon and Chang-Joon will be closely monitored by local police. Any violation of the supervision measures or departure from the residence will result in the forfeiture of the bail amount.
Kwon and Chang-Joon were arrested in Montenegro in March 2023 and accused of using fraudulent travel documents in an attempt to leave the country. Their original passports were confiscated in South Korea in October 2022.
The Podgorica High Court acknowledged that verifying the authenticity of the Belgian passports and identity cards held by the defendants would require additional time. However, it expressed confidence that the agreed-upon bail amount “is a sufficient guarantee of securing the defendants’ presence.”
South Korean and US authorities seek Kwon
Do Kwon, the co-founder of Terraform Labs and former leader of the Terra-Luna cryptocurrency project, had been sought by law enforcement agencies based on an Interpol Red Notice issued at the request of South Korean authorities, who had charged him with fraud.
Additionally, Kwon is wanted in the US, where prosecutors have accused him of various offenses, including fraud and securities law violations, in relation to the collapse of the Terra stablecoin and Luna cryptocurrency.
Throughout the legal proceedings, Kwon has steadfastly denied all allegations against him. While admitting to mistakes in the management of the Terra-Luna project, he maintains that there was never any intention to deceive investors.
The upcoming trial proceedings will play a crucial role in determining the future course of action for Kwon and Chang-Joon and the potential consequences of their alleged involvement in fraudulent activities.