The man behind the fallen terra (LUNA) project, Do Kwon, has been released from prison. The South Korean co-founder of Terraform Labs is under house arrest until his court hearing on June 16.
Deposit approved after investigation
The Terraform Labs founder was awaiting trial in Montenegro. He became with his chief finance officerHan Chang-Joon, was arrested after he tried to leave the country with forged papers. Do Kwon had fled after it became known that the USA, South Korea and Singapore wanted to sue him after his failed LUNA project and the USTC collapse stablecoin.
Now Montenegrin officers have released him after his $400,000 bail was accepted. Kwon’s bail had been accepted once before, but was withdrawn two weeks later. The court of Podgorica, the capital of Montenegro, cast doubts on the value of Do Kwon’s currency: his house and other properties. The suspect pleaded on May 11 that his property was “worth millions.” The court agreed and approved his release.
However, the Supreme Court of Montenegro reversed this with a statement that they could not appreciate the value of Kwon’s property “based on his claims, but on concrete evidence”. After a large-scale investigation, the value of his house and other property was verified as worth enough for the bail.
The bail must prevent Kwon from fleeing during his trial. If he does, he will not get his deposit (and therefore his property) back.
“The chance of losing his EUR 400,000.00 bail will be daunting enough to deter the suspect from escaping.”
According to the court. Given that the trial could take a while, it would be “inhumane” to keep Kwon in jail all the time without conviction. Instead, as mentioned earlier, the suspect is placed under house arrest. Meanwhile, the court is investigating the forged documents.