In the latest development in the ongoing legal saga surrounding Terraform Labs co-founder Do Kwon, the Podgorica district court in Montenegro has dismissed an appeal by the State Prosecutor’s office against an earlier bail agreement. As a result, both Do Kwon and Terraform Labs’ chief financial officer Han Chang-Joon will be allowed to await further legal proceedings under house arrest within the country.
The court has reinstated the original bail terms, initially set during a hearing on May 12. Under these conditions, Do Kwon and Chang-Joon must pay $436,000 (400,000 euros) each to secure their release from custody. While awaiting further legal action, the two individuals will be subject to strict bail conditions and must remain within Chang-Joon’s formal residence in Montenegro.
Local authorities will closely monitor Do Kwon and Chang-Joon during their period of house arrest. Violating the supervision measures or leaving the residence will result in the forfeiture of their bail. This stringent monitoring system aims to discourage any attempts by the defendants to flee the country.
To secure their release, both Do Kwon and Chang-Joon provided personal and financial information to the local authorities. This information included evidence of a sales contract and property registration for an apartment, parking space, and basement owned by Chang-Joon.
Additionally, Kwon submitted an invoice for a vehicle and bank account statements. The bail terms were established to ensure the defendants’ presence and discourage any potential flight from justice.
Do Kwon and Chang-Joon were arrested in Montenegro in March 2023 after allegedly attempting to use false travel documents to leave the country? Their original passports were confiscated in South Korea in October 2022.
The Podgorica High Court has acknowledged that verifying the authenticity of the Belgian passports and identity cards held by the defendants will require additional time. Nevertheless, the court deems the agreed-upon bail amount sufficient to guarantee the defendants’ presence throughout the legal proceedings.
It is important to note that despite being granted bail in Montenegro, Do Kwon remains a wanted figure in several jurisdictions. South Korean authorities seek to extradite him for investigations related to the collapse of the Terra-LUNA algorithmic stablecoin, which resulted in a staggering $40 billion loss in the cryptocurrency market in June 2021.
Interpol has also issued a red notice for Do Kwon concerning the charges he faces in South Korea. Furthermore, he is confronted with multiple fraud charges in the United States.
As the legal battle continues, the international community watches closely to see how these various charges against Do Kwon and Chang-Joon will be addressed in the jurisdictions seeking their prosecution.
