In a surprising turn of events, Terraform Labs founder Do Kwon has been taken back into custody after the Montenegrin High Court overturned a lower court’s decision to allow Kwon to be released on bail.
Do Kwon’s $436K bail revoked
Do Kwon and former chief financial officer Han Chong-joon are in jail again Bloomberg reports,
It comes after Montenegro’s High Court in Podgorica overturned a decision two weeks ago to release Quan and Han from house arrest on bail of 400,000 euros ($436,000).
After the Basic Court in Montenegro granted the pair bail, prosecutors in the case swiftly appealed the verdict. Court spokeswoman Marija Rakovic said this Bloomberg The matter will now go back to the lower court, which should take a decision keeping in mind the High Court’s decision.
Quan and Han were charged with using a fake passport in Montenegro after attempting to travel from Podgorica to Dubai in March with fake Belgian and Costa Rican passports. Both the defendants contend that the passports were legally issued.
TerraUSD, the algorithmic stablecoin designed by Terraform Labs, exploded last spring with governance token Terra (LUNA), wiping out more than $40 billion in investor wealth and triggering a snowballing crisis in the crypto industry last year. . Shortly after the catastrophic Terra ecosystem collapse, Three Arrows Capital, Voyager Digital and Celsius all declared bankruptcy.
In addition to the forgery charges, Do Kwon also faces criminal fraud charges in the US and in his home state of South Korea. South Korea issued an arrest warrant against him last September, alleging he violated capital market laws. As ZYCrypto Previously covered, he faces up to 40 years in prison in South Korea, the country where he committed most of his crimes.
US prosecutors in New York have charged Kwon with eight counts of conspiracy to commit commodity fraud, securities fraud, wire fraud and market manipulation.
Meanwhile, both the US and South Korea have demanded Montenegrin authorities extradite the owner of TerraForm Labs.