Montenegro prosecutors have filed an appeal against a local court decision to grant bail to Kwon Do-hyeong, the CEO of Terraform Labs, and his associate Han Chang-joon. The two individuals were detained on allegations of traveling with fake passports.
Kwon, a South Korean national, was arrested on March 23 at Podgorica airport in Montenegro. He was subject to an Interpol Red Notice requesting his detention.
The Montenegrin court indicted Kwon and Han on April 21. However, both individuals denied the charges of forging travel documents. Their attorneys requested bail at 400,000 euros each, which the local court approved on Friday.
Terraform Labs, the company associated with Kwon, was responsible for the algorithmic stablecoin and cryptocurrency project known as Terra-Luna. Unfortunately, the project collapsed in May 2022, resulting in the loss of over US$40 billion in market capitalization.
Kwon is wanted in both the United States and South Korea, where he faces accusations of fraud, violations of securities laws, and other charges related to the collapse.
Kwon has consistently denied all allegations against him, asserting that mistakes occurred in the management of the Terra-Luna crypto project but that there was no intention to deceive investors. Furthermore, he claims the charges against him in South Korea are politically motivated.
The next hearing for Kwon and Han is scheduled for June 16. Meanwhile, Montenegro prosecutors are challenging the decision to grant bail to the accused individuals. The appeal seeks to have the bail decision overturned, potentially leading to the continued detention of Kwon and Han.
The case has attracted significant attention due to the magnitude of the collapse of Terra-Luna and the allegations against Kwon. Many investors and authorities closely monitor the proceedings, awaiting further developments in this high-profile cryptocurrency case.
