After a successful appeal in Montenegro, the co-founder of Terraform Labs is now free on bond, although he will continue to be closely watched until his next court date.
Do Kwon, a co-founder of Terraform Labs, has been granted bail in Montenegro after a judge there rejected prosecutors’ arguments on June 2nd. The court’s ruling permits Kwon and Terraform Labs’ chief financial officer Han Chang-Joon to stay in Montenegro under house arrest while awaiting more judicial processes.
The State Prosecutor’s Office’s appeal against a prior bail arrangement was denied, according to a statement from the Basic Court in Podgorica, which resulted in the reinstatement of the initial bail conditions outlined in a hearing on May 12th. Kwon and Chang-Joon must each pay 400,000 euros ($436,000) as part of the bail requirements in order to be freed from detention.
The granted bail has stringent conditions, including Chang-Joon’s inability to leave his place of stay in Montenegro. The agreed-upon bond sum is a sufficient guarantee to assure the defendants’ attendance at court proceedings, the court noted.
They were detained in Montenegro in March 2023 after being charged with attempting to exit the country with forged travel credentials. Prior to their arrest in South Korea in October 2022, their original passports had been seized.
It should be noted that Kwon is still wanted by South Korean authorities, who want to extradite him for work on the June 2022 Terra ecological collapse. The market for cryptocurrencies suffered a huge loss of almost $40 billion as a result of the crash.
Kwon and Chang-Joon are given temporary freedom, albeit under house arrest, as a result of the court’s decision to grant bail, while they wait for additional legal proceedings. The reinstatement of the bail conditions guarantees their continued presence in Montenegro and availability for further court appearances.
While Kwon and Chang-Joon are given some relief by the bail in Montenegro, their legal troubles are still far from finished due to the ongoing investigation and the extradition request from South Korea. Due to its connection to the demise of the Terra ecosystem and the huge financial losses sustained, the case continues to draw attention.