Kwon, along with Terraform Labs’ chief financial officer Han Chang-Joon, will be placed under house arrest and closely monitored until their next court appearance.
Terraform Labs co-founder, Do Kwon, finds himself once again embroiled in a legal battle, but this time with a glimmer of hope. Following a strenuous legal process, Kwon has been granted bail in Montenegro, marking a significant turn of events in his ongoing legal saga.
The Montenegrin court dismissed an appeal made by prosecutors, allowing Kwon to be temporarily released from custody until his next court appearance. This decision came to light on June 2, when the Basic Court in Podgorica issued an official statement outlining the court’s ruling.
The State Prosecutor’s Office had initially lodged an appeal against an earlier bail agreement, but the court deemed it invalid, granting Kwon and Terraform Labs’ chief financial officer, Han Chang-Joon, the opportunity to await further legal proceedings under house arrest within Montenegro.
The court reinstated the bail terms that were initially set during a hearing on May 12. In order to secure their release, Kwon and Chang-Joon had to fulfill the financial obligation of paying 400,000 euros ($436,000) each. Subsequently, they were placed under strict bail conditions and are prohibited from leaving Chang-Joon’s legal residence in Montenegro.
In light of their release, local authorities will closely monitor Kwon and Chang-Joon, leaving no room for non-compliance. Any attempt to leave the residence or violate the imposed supervision measures would result in the forfeiture of their bail.
The defendants were required to provide personal and financial information to the local authorities to ensure their compliance. This included furnishing evidence such as a sales contract, property registration for an apartment, parking space, and basement owned by Chang-Joon. Additionally, Kwon reportedly submitted an invoice for a vehicle and bank account statements. The bail conditions were deliberately set in a manner that would discourage the defendants from attempting to flee the country.
Kwon and Chang-Joon found themselves in legal jeopardy when they were arrested in Montenegro in March 2023. The arrest followed allegations of using falsified travel documents while attempting to exit the country. Their original passports had been confiscated in South Korea back in October 2022, adding another layer of complexity to their legal predicament.
The court acknowledged the need for further investigation to verify the authenticity of the Belgian passports and identity cards held by the defendants. However, it determined that the agreed-upon bail amount serves as an adequate guarantee to ensure their presence during legal proceedings.
Although Kwon’s release on bail may bring him temporary relief, he remains a person of interest in various jurisdictions. South Korean authorities continue to seek his extradition for their investigations into the colossal collapse of the Terra ecosystem, which resulted in a staggering loss of approximately $40 billion in the cryptocurrency market in June 2022.
Furthermore, Interpol has issued a Red Notice for Kwon in connection with the charges in South Korea. Additionally, Kwon faces a series of fraud charges in the United States, further complicating his legal predicament.
The outcome of these complex proceedings remains uncertain as Do Kwon’s legal battles unfold across different nations. Until his next court appearance, Kwon will be closely monitored under house arrest in Montenegro, awaiting the resolution of the charges against him.