Montenegrin Prosecutor’s Office appeals court decision to release Do Kwon on bail

The founder of Terraform Labs will remain in custody pending an appeal by law enforcement officers

17.05.2023 - 08:30

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3 min

What’s new? The Podgorica District Prosecutor’s Office has appealed a court decision to release Terraform Labs (TFL) founder Do Kwon and his assistant, Han Chang-joon, on bail of €400 000 ($436 000) each. The defendants will remain in custody until a ruling is handed down, The Korea Times reports, citing local media.

News on The Korea Times website

How did events develop? The Montenegrin authorities charged Kwon with a criminal charge of forgery of documents since he was detained at Podgorica airport on March 23 with a fake ID. On May 12, the court ruled that the entrepreneur and his assistant could be released on bail and placed under house arrest because the risk of losing bail would prevent their escape. In addition, the documents obtained by the defendants in Belgium require authentication, which could take an indefinite amount of time.

Following the collapse of the Terra blockchain ecosystem in May 2022, class action lawsuits were filed against TFL and Kwon by investors from South Korea, the United States, and Singapore. The authorities in all three countries also launched investigations into the incident. The US Attorney’s Office charged Kwon with fraud within hours of his arrest. Similar accusations came from the US Securities and Exchange Commission (SEC) in a separate lawsuit.

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The SEC and Korean authorities later accused Kwon of withdrawing 10 000 bitcoins from his own project and asked Swiss crypto bank Sygnum to freeze the funds. The authorities in both countries expressed their intention to have Kwon extradited for trial in their jurisdictions.

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