Terraform Labs co-founder Do Kwon has just been released on bail in Montenegro after a court there rejected an appeal by prosecutors.
Appeal against bail agreement has been dismissed
According to a official statement of the Basic Court in Podgorica, an appeal against a previous bail agreement has been overruled by the Public Prosecutor’s Office. This allows Kwon and Han Chang-Joon, the chief financial officer of Terraform Labs, to await further legal proceedings under house arrest in the country.
The court re-established the original bail conditions at a May 12 hearing. To be released from custody, both persons must pay 400,000 euros ($436,000) each. Kwon and Chang-Joon are now subject to strict conditions and are not allowed to leave Chang-Joon’s residence in Montenegro.
Local police will keep a close eye on the duo. If one of them leaves the house or violates the supervision measures, the bail will be cancelled.
Kwon and Chang-Joon provided personal and financial information to local authorities, including proof of a contract of sale and property registration of an apartment, parking lot and basement owned by Chang-Joon.
Kwon reportedly provided an invoice for a vehicle and bank statements, with bail conditions deliberately drafted to discourage the suspects from fleeing the country.
Possibly false travel documents used
Kwon and Chang-Joon were arrested in Montenegro in March 2023 after allegedly using false travel documents in an attempt to leave the country. Their original passports were confiscated in South Korea in October 2022.
The court indicated that verifying the authenticity of the duo’s Belgian passports and identity cards would require more time. However, they emphasized that the agreed bail amount “is an adequate guarantee to ensure the presence of the defendants”.
Kwon remains a wanted person in several jurisdictions. South Korean authorities are looking to extradite the co-founder of Terraform Labs for investigation into the infamous collapse of the Terra ecosystem, which saw an estimated $40 billion in cryptocurrency market value lost in June 2022.
Interpol has also issued a Red Notice for Kwon regarding charges in South Korea. In addition, he faces a series of fraud charges in the United States.
