The bail of Do Kwon, the co-founder of Terra, is currently on hold after the prosecution has appealed. Kwon is still subject to an extradition request from South Korea and faces criminal charges in the United States (US).
Earlier decision is questioned
On May 17, the public prosecutor’s office in Podgorica, the capital of Montenegro, has appealed registered against the court’s earlier decision to release Kwon and Han Chang-Joon on bail of €400,000 each.
On May 12, the bail deal was finalized, with the court agreeing to place Do Kwon under house arrest instead of pre-trial detention. The court took just one day to decide on Do Kwon’s lawyers’ proposal. According to the documents, the bail would be included in a “special section” of the court’s working budget if house arrest is threatened.
Arrest on suspicion of using false documents
Kwon and Chang-Joon were arrested by Montenegrin authorities at Podgorica airport in March 2023 for allegedly using false documents. Their passports had previously been seized in South Korea. In 2022, the Terra ecosystem, created by Kwon and Terraform Labs, faced an implosion when Terra’s native stablecoin, TerraUSD (UST), depegged. This resulted in wiping out an estimated $40 billion in market value within days.
Currently, more than 233.3 billion Korean won ($176 million) in Kwon’s personal assets are frozen as part of pending criminal proceedings. South Korean prosecutors are seeking his extradition, while US prosecutors have indicted him on eight separate charges, including commodity fraud, securities fraud, wire fraud and conspiracy to defraud and market manipulation.